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EU states on course to approve China investment deal, but concerns over forced labour remain potential stumbling block
- Diplomatic sources say most member states have given proposed agreement their conditional backing, despite failure to secure commitment on workers’ rights
- A pact would be a big win for China ahead of Joe Biden’s expected push to build united front against Beijing
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China is on course to secure a major investment deal with the European Union after a last-minute agreement won widespread but conditional backing from most of the bloc’s member states, according to diplomatic sources.
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The developments came after the European Commission, the EU’s executive arm, made “a political decision in principle” to take the deal, which was seven years in the making, a senior diplomatic source said.
An agreement is now widely expected to be reached within this year, in what analysts say could be a game-changer for Joe Biden’s anticipated plan to rebuild an alliance with European countries to counter Beijing’s growing assertiveness.
Breakthroughs came this week when China agreed to open up its hitherto restricted market to EU businesses in multiple sectors. In return, it could get access to part of the EU’s energy sector, according to sources briefed on the negotiation.
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But one key EU demand – that China make a commitment to end forced labour – was not met, a point repeatedly expressed by “many” of the 27 countries at a closed-door meeting in Brussels on Friday.
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