THE Peoples’ Republic of China and the European Union has finally completed negotiations for a “comprehensive bilateral investment agreement” last December 30, 2020, after seven years of talks.
In a report by CGTN, one of China’s state media, Chinese President Xi Jinping said the agreement demonstrated China’s determination and confidence in promoting high-level opening up.
He added that the agreement will provide the two sides with greater market access, a higher-level business environment, stronger institutional guarantees and brighter prospects for cooperation.
The announcement was made during a meeting between Xi, German Chancellor Angela Merkel, French President Emmanuel Macron, European Council President Charles Michel and European Commission President Ursula von der Leyen via video link.
Xi emphasized that with 2021 approaching, China and the EU should show responsibility as the world’s two major powers, to strengthen dialogue, increase mutual trust, properly handle differences and work together to cultivate new opportunities.
He added that the two sides should coordinate in the battle against the pandemic, jointly promote economic recovery and accelerate green development.
The agreement will greatly boost world economic recovery in the post-pandemic era, promote the liberalization and facilitation of global trade and investment, as well as enhance the international community’s confidence in economic globalization and free trade, Xi said.
“Today’s agreement is an important landmark in our relationship with China and for our values-based trade agenda. It will provide unprecedented access to the Chinese market for European investors, enabling our businesses to grow and create jobs,” said von der Leyen.
“It will also commit China to ambitious principles on sustainability, transparency and non-discrimination. The agreement will re-balance our economic relationship with China.”
“This deal will give European businesses a major boost in one of the world’s biggest and fastest-growing markets, helping them to operate and compete in China. It also anchors our values-based trade agenda with one of our largest trading partners,” according to Valdis Dombrovskis, executive vice president and commissioner for trade.
The decision of the EU leaders to proceed with the agreement with China was despite the opposition of the United States, whose economic and political influence all over the world continue to decline.
The European side also added it is a high-level investment agreement and it appreciates China’s further opening-up and active approaches to spur trade liberalization and investment facilitation, the CGTN report added.
China export eases PH trade woes
In the Philippines, China has served as a ‘savior’ of the domestic economy with China absorbing 15 percent of the country’s exports last year, despite the pandemic that has slowed down international and regional trade.
Citing the data from the Philippine Statistics Authority (PSA), Chinese Ambassador to the Philippines, HE Huang Xilian said he is “glad to learn” about the development.
“While remaining to be the Philippines’ top import supplier as well as the top trading partner, China became the country’s second largest export market in the first 10 months of 2020, with more than 15 percent of the Philippines’ total exports being shipped to Chinese mainland, as shown by the data of trade in goods released by the Philippine Statistics Authority (PSA).”
During the ‘3RD China International Import Expo’ (CIIE) last year, Philippine agriculture also received a big boost with the signing of an agreement with a Chinese company for the supply of young coconut (“buko”) and dried fruits worth $200 million spread over 5 years.
Philippine avocados were also the first to be exported to China among the Asean countries, after an agreement between the Department of Agriculture and China’s General Administration for Customs last October 24, 2019.
The first batch of Philippine avocados from the Port of Davao reached Shanghai, China last March 31, 2020.