NYT: China and E.U. Leaders Strike Investment Deal, but Political Hurdles Await
Wed January, 2021, Age: 2 years
China and the E.U. have struck an investment deal that would make it easier for Chinese and E.U. companies to conduct business on each other’s territory. The deal follows a December agreement whereby China had agreed to abide by international standards regarding forced labor. China also pledged to do more to combat climate change. But the investment deal is expected to face stiff headwinds in the European Parliament, which must still ratify the deal. Objections to the deal center around China’s continued crackdown of the political opposition in Hong Kong, and China’s human rights abuses in Xinjiang province. Opposition to the deal may also focus on the perception that it mainly favors German companies. According to Philippe Le Corre, a research fellow at the Harvard Kennedy School, the deal “is mainly designed to please a handful of German multinational companies.” The deal would also come at an inopportune time for the incoming Biden administration which has signaled that it is interested in forming a trans-Atlantic alliance to compete with China.