Balancing act for Brussels between Beijing and Biden

THE surprise signing in December of the European Union (EU)-China Comprehensive Agreement on Investment (CAI), despite the coronavirus chill in bilateral relations, was always likely to cause ratification headaches for Brussels and Beijing. Fast forward more than half a year later, and that is being borne out, with growing signs that ratification may be kicked into the long grass. Relations remain thorny post-pandemic, and uncertainty is mounting about whether the Brussels-based institutions and EU-27 will finally ink the deal.

The latest injection of uncertainty came earlier this month, when the High Representative of the EU for Foreign Affairs and Security Policy, Josep Borrell, said that Brussels is preparing a report reviewing its relationship with China. The revelation is a surprise as this will be the second time this year that the European Commission and Mr Borrell carry out such an exercise, after concluding in April that there was no need to update the EU's China strategy, which was first adopted in 2019.

The planned document will reportedly be an implementation report modelled on that 2019 document which referred to China simultaneously as a partner, an economic competitor and a systemic rival. The report will be presented to EU national leaders ahead of the European Council meeting of presidents and prime ministers in October.