In a move that could upset US, China seals pact with EU

New Delhi, Dec 31: The European Union leaders and the Chinese sealed a landmark pact which would make it easier for their companies to invest in each other.

President of China, Xi Jinping had earlier this month intervened to extend key market access concessions to businesses under the EU-China Comprehensive Agreement on Investment. It was the persuasion by Xi that that made the European Union accede to the pact. Brussels expects to open up lucrative opportunities for its businesses.

European Commission President Ursula von der Leyen tweeted after a video call with President Xi, " today the EU and China concluded in principle negotiations on an investment agreement."

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The meeting also involved EU Council president Charles Michel, French President Emmanuel Macron; and German Chancellor Angela Merkel who holds the rotating presidency of the EU till today.

President Xi told the meeting that the investment deal will offer bigger markets and a better business environment for both the Chinese and European investments. This shows China's determination and confidence in opening up and this pact would stimulate the global economy, promote economic globalisation and free trade, he also said.

There was no official word from the US on this deal. This pact comes at a time when President-elect, Joe Biden had hoped to re-build the transatlantic alliance in an effort to take on China. Xi on the other hand timed this pact before the end of Germany's presidency and before the Biden administration takes over in two weeks.