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The EU will get better access to the Chinese market and improve competition conditions after it finalizes a long-awaited business investment deal with China this week.
The deal would open up China's manufacturing, construction, advertising, air transport, and telecoms sectors to EU firms. It will come shortly after the UK's trade agreement with the EU, which was announced on December 24.
Investment deal negotiations began in 2014 but the two sides were in a disagreement on several issues. However, rising trade tensions with the US prompted China to change its position.
China demands access to the EU's energy market, but there were concerns over national security. However, China is expected to be given access to a small part of the European renewable energy sector on a reciprocal basis.
The pact is also designed to remove barriers to investment in China such as joint-venture requirements and caps on foreign ownership in certain industries.
Once the expected deal is reached, it needs to be ratified by the European parliament, a process that may not begin until the second half of 2021.
