Industry new

EU and China agree new investment treaty

The accord was confirmed by Chinese President Xi Jinping and EU leaders including European Commission president Ursula von der Leyen on Wednesday, bringing seven years of often difficult negotiations to a successful close.

Valdis Dombrovskis, the EU’s trade commissioner, told the Financial Times that the deal contained the “most ambitious outcomes that China has ever agreed with a third country” in terms of market access, fair competition and sustainable development.

“We expect European businesses will have more certainty and predictability for their operations,” he said. “We have some very welcome changes to the rules of the game, because for a long period, trade and investment relations with China have been unbalanced.” Industries where the EU has secured improved access terms include automotive, private healthcare, cloud computing and ancillary services for air transport, Mr Dombrovskis said. The improved market access arrangements for car manufacturing cover electric vehicles and hybrids, he noted.