EU High Representative for Foreign Affairs and Security Policy Josep Borrell

The 10th round of China-EU high level strategic dialogue was held to pave the way for the rescheduling of the China-EU Summit and further negotiations on the investment treaty, setting the tone for pragmatic cooperation. Chinese State Councilor and Foreign Minister Wang Yi spoke with EU High Representative for Foreign Affairs and Security Policy Josep Borrell by video conference, with one item top on the agenda – trade and investment cooperation, the Global Times reports. Wang pointed out that China and EU are not competitors but long-term strategic partners, and the two sides should stand on the progressive side of history, together with the majority of the international community to uphold multilateralism. Hong Kong affairs, the Iranian nuclear issue, the situation on the Korean Peninsula, and Middle East issues were also discussed. Sun Keqin, Research Fellow at the China Institutes of Contemporary International Relations, said that unlike pessimistic reports from European media that the summit would be cancelled, he expects the summit to be rescheduled not too much later than the original date of September 13, unless the pandemic remains out of control by then. “At a time when disputes are on the rise, preserving economic cooperation is particularly crucial to the stability of bilateral relations,” said Bai Ming, Research Fellow at the Chinese Academy of International Trade and Economic Cooperation.

The time framework to complete a sweeping bilateral investment treaty by the end of the year remained unchanged for the Chinese side after a 29th round of negotiations in late May. But on the EU side, officials were reportedly considering tightening scrutiny of Chinese investment, particularly from Chinese state-owned firms. “In this regard, some EU countries are heavily influenced by the U.S. Such strict rules would pose a relatively large hurdle for Chinese investments,” Bai said, noting that the EU should not backtrack on previous consensus if it wants to push forward the deal. China and the EU are standing at a juncture when the latter was alienating from the U.S., trying not to fully join the U.S.-led anti-China circle, but unlikely to stand with China either, given areas of conflict, analysts said, as reported by the Global Times.

Josep Borrell added in a press release that “during more than three hours, we discussed a wide range of topics, reflecting the broad relations that we have. I highlighted the importance of reaffirming all relevant commitments from the 2019 Summit, which have not yet been adequately implemented, notably on the issue of market access, improving the level playing field, and reciprocity, where, on the European Union’s side, there are important concerns. We want our cooperation Agenda 2025 to be mutually satisfactory and we will engage in talks in order to do so.” Borrell added: “We agree on the need to continue working together on global challenges. Some of them will be even more important in the post-Covid-19 world. In particular, we need to hold on to our commitment to fight climate change and reach the objectives of the 2030 Agenda and the Paris Agreement. We will have to “build back better” – all of us. We all need to seize this opportunity to transform our economies and societies in a green and sustainable way.” During the Q&A session, Borrell said that the Summit will take place by the end the month, with the focus on the Agenda 2025, which sets out the concrete issues. He added that Agenda 2025 is today the most important deliverable on the table and that the investment agreement would not be ready for the Summit.

On the concept of China being a “systemic rival”, High Representative Borrell said that “sometimes, there are differences on interests and on values. That is a fact of life. It is also a fact of life that we have to cooperate, because you cannot imagine how we can solve the climate challenge without strong cooperation with China. You cannot build a multilateral world without China participating in it effectively, not in a “Chinese way”, but in a way that can be accepted by everybody. I think these kind of explanations are good, because I can tell you that we have talked a lot about what it means to be a “systemic rival”, according to the EU press release.

Chinese Foreign Minister Wang Yi said that both sides should take the 45th anniversary of the establishment of diplomatic relations as a new starting point for developing closer ties.