Energy News  
TRADE WARS
EU beefs up powers to control China investment
By Alex PIGMAN
Brussels (AFP) May 5, 2021

China-EU investment deal 'important' despite 'difficulties': Merkel
Berlin (AFP) May 5, 2021 - German Chancellor Angela Merkel said Wednesday she remained convinced that the EU-China investment deal was an "important undertaking" even as strained relations complicate the agreement's ratification.

"Despite all the difficulties that will surely arise with the ratification, it is a very important undertaking," Merkel said in a speech to her conservative CDU/CSU alliance.

The massive investment pact laid the foundations for "mutually beneficial" trade, she said, citing more reciprocity on market access, compliance with international labour standards and the brand protection of regional products as some of the deal's advantages.

To the surprise of many, the European Union and China in late December approved a major investment pact, wrapping up seven years of painstaking negotiations thanks to a final push by Germany.

The pact has been defended as a much-needed opening to China's economy for European companies, but is sure to face a difficult ratification amongst the 27 member states as well as the European Parliament.

Ties between the EU and China are at a low point after an angry exchange of tit-for-tat sanctions over human rights concerns.

EU Executive Vice President Valdis Dombrovskis told AFP on Tuesday that the efforts to win EU approval for the deal were effectively on ice.

"It's clear in the current situation with the EU sanctions in place against China and Chinese counter sanctions in place, including against members of European Parliament (that) the environment is not conducive for ratification of the agreement," Dombrovskis said.

The EU sanctioned four Chinese officials in March over suspected human rights violations in China's far western region of Xinjiang.

China responded by imposing its own sanctions against European politicians, scholars and research groups.

The EU commission on Wednesday unveiled new powers to block state-backed companies making unfair inroads into Europe, as the bloc seeks new ways to respond to China's rise.

The new rules, once approved by member states and European Parliament, will give EU competition authorities fresh abilities to probe foreign companies seeking to snap up EU firms or public contracts.

The rules don't specifically mention China, but they land as ties between the EU and its second biggest trading partner are at a low point after an angry exchange of tit-for-tat sanctions over human rights concerns.

The bitterness has forced the EU commission to suspend its efforts to seek ratification of a German-backed EU-China investment deal, which had been billed as a key tool to pave the way towards smoother relations.

"Unfair advantages accorded through subsidies have long been a scourge of international competition. This is why we have made it a priority to clamp down on such unfair practices," EU vice president Valdis Dombrovskis said.

"China is certainly a challenge in this context but this ... can cover pretty much any country, and any situation, if it's found that there is a distorted position in the market," he said.

In the new rules, the bloc's powerful antitrust authority would investigate state-backed foreign companies seeking to acquire EU businesses with an annual turnover of more than 500 million euros.

State aid investigations would also be launched into subsidised companies bidding for large public contracts in Europe, such as in rail or telecommunications, worth more than 250 million euros.

If necessary, Brussels will be able to implement corrective measures to remedy possible distortions of competition, and in some cases even prohibit a merger or the award of a public contract to the company concerned.

Illegal aid could include interest-free loans, preferential tax treatment or simply direct subsidies.

The European employers' organisation BusinessEurope welcomed "a step in the right direction".

- Personal embarrassment -

The regulation comes shortly after the Commission, which manages trade policy for the EU's 27 member states, reached its surprise investment deal with Beijing in late December.

Dombrovskis, who is also the EU's trade supremo, told AFP that he had suspended efforts to promote the deal to the European Parliament given the sanctions and poisonous political context, a move that was welcomed by MEPs.

The dispute between the EU and China escalated suddenly in March when the EU imposed sanctions on four party and regional representatives of the Xinjiang region because of their actions against the Uyghur Muslim minority.

Beijing swiftly hit back with punitive measures on European politicians and academics, including German MEPs Reinhard Buetikofer and Michael Gahler.

On Wednesday, Buetikofer said the suspended investment deal was "a personal embarrassment" for Chinese President Xi Jinping who had "declared Europe a top priority" last year.

The commission also unveiled a new industrial strategy that would help the EU ease its dependence on China and others, especially after the lessons of the covid-19 pandemic.

EU industry commissioner Thierry Breton, a former tech CEO, has complained that the EU has been too naive in its approach to strategic sectors such as microchip making that depends heavily on manufacturing in Asia.

The commission said it was exploring ways to boost European independence in chip-making, as well as 5G, hydrogen energy and possibly rocket launchers and clean aviation

The pandemic "was so unbelievable" and taught us that the "partner for yesterday could not be the partner of today," Breton said, in reference to trouble in gaining supplies to covid vaccines, notably from the UK.

"We have to sit with our European companies and decide how we want to move forward" in key sectors, he said.

The EU says it is seeking an "open strategic autonomy" to strengthen is global position.


Related Links
Global Trade News


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only


TRADE WARS
EU China investment deal on ice after sanctions; As G7 seeks common position
Brussels (AFP) May 4, 2021
The European Commission said Tuesday that efforts to win approval for the EU's massive investment deal with China were effectively "suspended" given the soured diplomatic relations between both sides after tit-for-tat sanctions. "We now in a sense have suspended... political outreach activities from the European Commission side," EU Executive Vice President Valdis Dombrovskis told AFP in an interview. "It's clear in the current situation with the EU sanctions in place against China and Chinese c ... read more

Comment using your Disqus, Facebook, Google or Twitter login.



Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

TRADE WARS
French parliament to vote new climate law criticised by green groups

Germany's struggling Social Democrats push green credentials

Germany sets more ambitious climate goals after landmark ruling

Reducing methane emissions by 45% can achieve Paris goals

TRADE WARS
Electric vehicle batteries: The older they get, the safer they are

Renewable energy sources: On the way towards large-scale thermal storage systems

Denmark's largest battery - one step closer to storing green power in stones

On course to create a fusion power plant

TRADE WARS
Vertical turbines could be the future for wind farms

Researchers working to further develop monopile production for offshore wind farms

Blowing in the wind: Fishermen threaten South Korea carbon plans

In Texas, a rancher swaps his oil pumps for wind turbines

TRADE WARS
Northrop Grumman Solar Arrays to Power Airbus OneSat Spacecraft

Space weather and solar blobs

Researchers unveil roadmap to expand NY solar energy, meet green goals

Closing in on state-of-the-art semiconductor solar cells

TRADE WARS
Seeking enhanced materials for nuclear reactors

India closer to building world's biggest nuclear plant: EDF

Sri Lanka expels ship carrying nuclear material for China

Czechs ban Rosatom from nuclear tender, rule out Sputnik vaccine

TRADE WARS
Will your future clothes be made of algae?

Incentives could turn costs of biofuel mandates into environmental benefits

Dominating fungus could be solution to producing more biofuels and chemicals

Hydrocracking our way to recycling plastic waste

TRADE WARS
Asian stocks mixed after US jobs miss, oil up after cyber attack

Total pulls Le Monde ads over report on Myanmar military ties

Total shared gas revenue with Myanmar military: report

Major US pipeline struggles to reopen after ransomware attack

TRADE WARS
Thousands march in France as Macron takes climate plan to Senate

French climate bill gets parliament OK despite green opposition

US climate envoy Kerry says islands face 'beyond existential' threat

Top German court finds govt climate plans fall short









The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.