December 22, 2020

The chances of China and the European Union concluding a landmark investment deal before the end of the year appear to be diminishing, as opposition grows, including from the U.S., to any agreement that fails to tackle the issue of forced labor.

Talks between EU trade chief Valdis Dombrovskis and Chinese Vice Premier Liu He, tentatively scheduled for Tuesday morning, were postponed, according to someone briefed on the negotiations. Ambassadors from the EU member states, meeting Tuesday afternoon, also dropped a discussion on the EU-China investment deal from their schedule.

Opposition to an accord from the incoming Biden administration in the U.S. may have put the brakes on the EU-China talks. Referring to the planned agreement, Jake Sullivan, President-elect Joe Biden’s choice for national security adviser, urged “early consultations with our European partners on our common concerns about China’s economic practices,” in a tweet ahead of Tuesday's planned talks.

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