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2021
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China-EU practical cooperation injects strong impetus into the global economy after the epidemic
The emergence of the new type of coronavirus pneumonia in 2020 has brought a "black swan" to the world and also brought more countercurrents to economic globalization. The simultaneous shrinking of the scale of global trade and investment and the total economic volume has aroused the attention of all parties. The United Nations Conference on Trade and Development called in the "2020 Trade and Development Report" that if there is no radical policy to reactivate trade and capital flows, the recovery and development resilience of the global economy will face tremendous pressure.
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The emergence of the new type of coronavirus pneumonia in 2020 has brought a "black swan" to the world and also brought more countercurrents to economic globalization. The simultaneous shrinking of the scale of global trade and investment and the total economic volume has aroused the attention of all parties. The United Nations Conference on Trade and Development called in the "2020 Trade and Development Report" that if there is no radical policy to reactivate trade and capital flows, the recovery and development resilience of the global economy will face tremendous pressure.
This call has received a strong response by the end of 2020. Following the formal signing of the Regional Comprehensive Economic Partnership Agreement (RCEP) on November 15, 2020, the leaders of China and the European Union jointly announced on December 30 that China has completed the EU investment agreement negotiations as scheduled, which undoubtedly injects strength into the global economic development after the epidemic power.
This will effectively stabilize the economic, trade and investment cooperation between the world's two largest economies.
In recent years, China-EU bilateral trade cooperation has always been ahead of investment cooperation. In 2019, the European Union will surpass the United States to become China's largest trading partner. But in the same year, the stock of EU direct investment in China only accounted for 5.6% of China's stock of foreign investment, and China's direct investment in the EU accounted for 4.3% of stock of foreign investment.
The EU-China Chamber of Commerce believes that China and the EU have complementary technological advantages and there is great potential for investment and cooperation between the two sides. The EU and China have their respective advantages in emerging fields such as artificial intelligence, 5G, and cloud computing. At the same time, there is a strong demand for cooperation between the two parties in the field of industrial technology. According to the 2020 Business Confidence Survey of the EU-China Chamber of Commerce, 62% of the members indicated that if China further expands market access, they are willing to increase investment in China. Nearly half of the members are prepared to reinvest 5% to 10% of their annual income. One-third of people said that their investment would be greater. The breakthrough in the negotiation of the China-EU Investment Agreement will help create a transparent, consistent and predictable business environment for both parties.
Looking forward to the development trend of the world's major economies in 2021, major institutions are generally worried that insufficient policy support may delay the recovery process of the world's major economies. However, the breakthrough of the China-EU Investment Agreement has provided more certainty for the uncertain global economy.
From the perspective of the European Union, AIA believes that through this agreement, European companies have obtained important business opportunities, especially important market access. In the foreseeable future, Europe will share the public dividends in China's financial services, electric vehicles, and telecommunications. Previous research by the EU-China Chamber of Commerce has shown that despite the slowdown in global economic growth in recent years, European companies operating in China have made considerable profits. 39% of members indicated that their revenue in 2019 increased by 20% year-on-year, and 11% of members indicated that their business growth in China was even higher. Therefore, the EU-China Chamber of Commerce believes that the Chinese market has unlimited potential and European companies hope to share the development dividend. The conclusion of the follow-up agreement will undoubtedly benefit the recovery of the EU economy after the epidemic.
Reuters believes that by the end of 2020, China has made breakthroughs in RCEP and the China-Europe Investment Agreement. On the one hand, it reflects China's determination and confidence in promoting a high-level opening up to the outside world, and on the other hand, it lays a solid foundation for China. Build a new pattern of development. Spanish foreign banks believe that this breakthrough will have multiple dividends for China. A more convenient, transparent and open bilateral investment environment will effectively promote bilateral investment and add new momentum to China's medium and long-term economic development. More EU companies will invest in the Chinese market, and the policy agenda of the Chinese government's structural reforms will further enhance the international competitiveness of Chinese companies.
In particular, it needs to be emphasized that the spirit of cooperation embodied in the China-EU Investment Agreement is exactly what is urgently needed for the recovery of the global economy after the epidemic.
After the negotiation, Wooddock, the president of the EU-China Chamber of Commerce, expressed the hope that the two sides will maintain the spirit and attitude of pushing for the completion of the negotiation and reaching the relevant agreement as soon as possible. Sexual contact can produce results.".
The EU-China Chamber of Commerce previously stated that some people in the market encourage foreign-funded companies to actively "decouple" from China, but European companies look forward to further consolidating their positions and participating in market competition. share. The conclusion of a strong investment agreement between China and Europe shows that deepening cooperation is still the best development path, and it can also refute the international clamor of the "zero-sum game".
The Foreign Bank of Spain stated that in the post-epidemic era, the China-EU investment agreement will become a "destroyer", indicating that Eurasian countries have abandoned the Cold War mentality and are using economic and trade rules to seek closer relations. Under the new bilateral and multilateral trade and investment framework, promoting global recovery requires unremitting efforts from all countries.
(Wang Chutian)
Source: Economic Daily
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