EU Asserts Sovereignty in China Investment Deal, Signals Green Light to its Investors
- 12 February 2021 (3 min read)
EU Asserts Sovereignty in China Investment Deal, Signals Green Light to its Investors
The EU-China investment deal signed in the closing hours of 2020, will, if confirmed by the European Parliament and national legislatures, provide the inter-governmental framework enabling Europe’s institutional investors to drive ahead in seeking opportunities in the greatest global economic and capital markets growth story for decades to come, expert geopolitical and financial markets speakers told journalists attending an online Chinese lunar New Year’s Eve news conference.
The signing of the conclusion in principle of the Comprehensive Agreement on Investment (CAI), in the face of strong criticism from the incoming Biden administration, marks Europe’s assertion of its geopolitical and economic sovereignty. The CAI also represents a tectonic shift in Europe’s triangular relationship with China and the U.S., as Beijing, seeks to deepen and internationalise its capital markets and widen the global role of the renminbi currency at the expense of its superpower rival.
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