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Beijing / Brussels (dpa) - China and the EU are about to reach a fundamental political agreement on a future-oriented investment agreement.
The breakthrough is to be announced today after a video conversation between EU Commission President Ursula von der Leyen and EU Council President Charles Michel with China's head of state and party leader Xi Jinping, as the German press agency learned.
China's foreign office spokesman confirmed plans for a video conference between the two sides.
The agreement aims to improve market access for European companies in China, ensure fair competition and open up new business opportunities.
It is the most comprehensive attempt by the EU to date to put the economic relationship with the emerging, second-largest economy on a new footing.
But critics don't go far enough.
The future US administration also showed certain reservations about Europeans going it alone.
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Most recently, China had made new promises on the issue of labor rights.
The communist leadership has promised to undertake "permanent and sustainable efforts" to ratify two conventions of the international labor organization ILO against forced labor, as emerges from an internal briefing to the EU member states that is available to the German Press Agency.
Critics saw it only as "superficial lip service".
As the world's most populous country with 1.4 billion people, China is an important trade and economic partner for the EU.
Last year, goods worth an average of 1.5 billion euros were traded between the two sides every day.
After the USA, China is the Europeans' second most important trading partner.
For the EU, the conclusion of the agreement is also a prerequisite for starting talks on a free trade agreement.
The agreement in principle is a «first step», which will be followed by further negotiations on the exact legal text of the agreement and «significant technical work», as can be seen from the internal paper to the EU members.
The EU Commission therefore does not expect a conclusion until “early 2022”.
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For the Chancellor, the breakthrough shortly before the end of the German Council Presidency would be an important success.
But it would also be a symbolic victory for China's head of state and party against the background of the ongoing trade war with the USA - and during the transfer of power in Washington.
The elected US President Joe Biden wants to stick to the tough course against China and forge alliances with allies such as the Europeans.
There are concerns that Brussels is acting too hastily and without further consultation with the new US administration.
"These concerns are understandable, but unjustified," says the internal EU paper.
The EU welcomes cooperation with the USA towards China, which should, however, be based on “different pillars”.
Europe's trading partners also benefited from more market access, transparency and better competitive conditions in China.
Greater openness to state subsidies or obligations for state companies should also help the work of the World Trade Organization (WTO).
The agreement was fought for until the very end.
China has made new concessions on transport services by sea or air, in the areas of finance, computers, research and development, alternative drive vehicles, telecommunications, cloud services and the operation of private hospitals, according to an EU paper.
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The CSU European politician Manfred Weber welcomed the project.
"There is currently a threat that China will be the big winner of the Corona crisis and Europe must not be the big loser," said the parliamentary group leader of the European People's Party of the dpa in Brussels.
"That is why we must continue to have the strength to improve trade relations, to conclude modern trade contracts and not to put them on the back burner."
Cooperation with China is a future task.
China is not only an exciting sales market, but also a system competitor.
"That is why modern trade policy today must be linked with our principles, with our agenda, which is shaped by our values," said Weber.
"And that specifically means that the question of forced labor, the question of labor standards, is part of modern trade agreements."
In addition, it is about fair competitive conditions.
If Chinese corporations are allowed to go on a shopping spree in Europe, it must be the other way around.
© dpa-infocom, dpa: 201230-99-850183 / 2
EU Commission on the Investment Agreement
EEAS on EU-China relations
EU figures on trade with China
Federal Ministry of Economics on economic relations with China
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Destatis to trade with China
Response of the federal government to a small question about the EU-China investment agreement
Mikko Huotari from Merics