China is going to begin discussing an increased investment with the European Union. This agreement would increase the openness and coordination between the nations as well as increase the investment, which has been holding the trade growth rate back.
Prime minister Li said that trade has increased between the two sides, but there is room for improvement. They could do better by increasing direct investment between the two sides. Europe is the most important trading partner for China. However, they have had many disputes with each other over steel, wine, and solar panels.
Europe sees this new agreement as a test of China’s “willingness to compromise.” China has not been too excited to play by the rules of the World Trade Union, but this agreement requires more cooperation, so it will be a good test.