Europe and China Boost to Their Economic Relations through An Investment Agreement May Fall Short of Expectations

After more than seven years of negotiations, the European Union (EU) and China reached a deal for their Comprehensive Agreement on Investment to go forward at the end of 2020. Such deal is important politically both for the EU and China. The EU reads it as a clear sign of its quest for strategic autonomy from the United States (US) after the Trump administration severaly damaged the Transatlantic alliance. For China, it offered a clear signal to the US that it would not succeed in isolating what is meant to become the largest economy in the world. This should be seen all the more impacting as it was come only two months after China’s signing of yet another landmark regional trade agreement with 10-members of the Association of Southeast Asian Nations, Australia, Japan and South Korea, namely the Regional Comprehensive Economic Partnership (RCEP). Suddenly, it looks as if the then U.S. President-elect Joe Biden has been left alone in his pursuit to contain China even before he was sworn in on Jan. 20 this year