EU-China summit underway as tensions rise
Senior figures from the EU and China are holding talks aimed at rebooting trade negotiations. However, the video conference involving European Council president Ursula von der Leyen and her Chinese counterpart Xi Jinping comes at a time of tension between the two sides. Coronavirus, Hong Kong and a stalled investment pact stand between them.
China’s economic policy has changed since the investment talks began six years ago. EU investors have long complained about lack of access to Chinese markets and unfair government subsidies.
The flow of Chinese money into EU countries has been falling since 2016 with direct investment back at 2013 levels. Trade relations need repairing – and the talks need to get moving.