China-EU Relations: Two sides agree target for next year is investment access deal

World
Europe

02:35

We begin with Chinese Premier Li Keqiang's trip to Europe. China and the European Union have agreed on Tuesday to strengthen their trade relationship, pledging to work toward making it easier for foreign investors to have access to the world's second largest economy. CGTN's Mariam Zaidi has more from Brussels.

It's one of the most profitable relationships on earth. According to the head of the European Commission, China and the European Union do nearly one-point-seven billion dollars of trade every day. Together, they account for a large chunk of the world's GDP.

While China exported some 422 billion dollars into the EU in 2017, investments flowing from the EU into China was about half that. EU companies have long lobbied for better access to Chinese markets.

At the EU-China Summit in Brussels on Tuesday, a breakthrough. With China promising equal treatment for European companies.

LI KEQIANG CHINESE PREMIER "We both believe that we need to uphold multilateralism and free trade and we need to advance China EU cooperation as we are two important forces for peace and development in the world."

Premier Li said foreign companies would not be forced to hand over sensitive information as a trade-off for operating in China. He agreed to set up a dispute mechanism for handling complaints.

The EU Commission president welcomed the change.

JEAN-CLAUDE JUNCKER EU COMMISSION PRESIDENT "European position is clear. We believe in China and we believe in our partnership and we are ready to work together and at the same time to be more ambitious in standing up for our interest and values."

China also committed to World Trade Organization reform with respect to industry subsidies to make it easier for foreign investors to get access to China's market.

DONALD TUSK EU COUNCIL PRESIDENT "The two sides reaffirmed the joint commitment to cooperate on the WTO reform to ensure its continued relevant and allowed to address global trade challenges. To this end, both sides will intensify the discussions with the aim of strengthening international rules on industrial subsidies."

MARIAM ZAIDI BRUSSELS "And in Brussels, both sides committed to conclude their Comprehensive Agreement on Investment by 2020. And that could really help to improve market access and eliminate discrimination, especially for EU companies. Mariam Zaidi, CGTN, Brussels."