A Sino-European investment deal has stalled in the final stages of negotiations because of China’s attempts to increase its demands on nuclear energy, the German weekly WirtschaftsWoche reported Wednesday (Dec. 23).
The nuclear power issue is controversial within the European Union because such investments could put sensitive infrastructure in the hands of China. The Economic Times quoted EU sources as saying that China wants to invest in EU nuclear power plants and apply Chinese technology in the sector. China hinted to its European allies that the Chinese side considers itself to have superior technology in this field, the newspaper wrote.
However, several European countries have already made clear their rejection of nuclear energy and have decided to get rid of the technology altogether in the coming years.
The EU and China are committed to reaching an investment agreement by the end of 2020. According to German and EU officials, the agreement will expand the opening of the Chinese market to European companies and will also put EU companies on an equal footing with other Chinese companies. It could be a big step toward repairing Sino-European relations after the outbreak of the new crown epidemic and China’s crackdown on Hong Kong.
But the agreement could also complicate relations between Europe and the United States. Jake Sullivan, President-elect Joe Biden’s handpicked national security adviser, tweeted earlier this week that Washington would welcome early consultations with European partners on “shared concerns with China’s economic measures.
China is concerned about being isolated by the West as the U.S. steps up its strikes in the trade war and the EU tightens regulatory measures on Chinese investment in key sectors. Other sticking points in the EU-China investment agreement, according to Western diplomats, are perpetual development and related strains on human rights issues, such as forced labor in China.
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