China agrees to further financial cooperation with EU

CHINA agreed with the European Union to further promote two-way opening up of their respective financial sectors and increase regulatory cooperation in the industry, in broad-ranging economic talks on Tuesday (Jul 19), according to Chinese state media.

In the ninth round of the trade and economic dialogue between the EU and China, Chinese Vice Premier Liu He and European Commission Executive Vice President Valdis Dombrovskis had “pragmatic”, “candid” and “efficient” discussions on macroeconomics, industrial and supply chains, trade and investment, as well as financial cooperation, Xinhua news agency reported.

“The two sides believe the global political and economic situation is currently undergoing profound changes,” Xinhua reported, without elaborating.

The last round of such talks took place two years ago, also led by Liu and Dombrovskis, focusing on a landmark investment pact. By the end of 2020, Brussels and Beijing had concluded the deal, following seven years of talks, but have not since ratified it, frozen by rights allegations, geopolitics and a war in Europe.

The Xinhua report made no mention of the investment pact.

In March 2021, Beijing imposed sanctions on EU politicians, think-tanks and diplomatic bodies in response to Western sanctions against Chinese officials accused of mass detentions of Muslim Uyghurs in China’s Xinjiang. Beijing denies any wrongdoing.

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The sanctions and counter-sanctions led the European Parliament in May 2021 to halt ratification of the investment pact.

Then, in early 2022, China suspended imports from Lithuania, a EU member, after the Baltic nation let Taiwan open a de facto embassy in Taipei and angered Beijing, which regards the democratically ruled island as its own territory.

Tensions deepened further over China’s refusal to condemn Russia’s invasion of Ukraine, with EU leaders calling on China in April not to “turn a blind eye” to what Russia calls a “special military operation”. REUTERS