Headlines
China talks up EU trade deal, years after investment pact was frozen
Published by Global Banking and Finance Review
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 6, 2025
2 min readLast updated: January 21, 2026
China signals renewed trade talks with the EU, exploring new agreements after the 2021 investment pact freeze.
BEIJING (Reuters) -China's commerce ministry on Thursday flagged fresh prospects for a trade or investment agreement with the European Union, raising the idea of negotiations for a deal similar to a landmark investment pact whose ratification was frozen in 2021.
"China is willing to deepen mutually beneficial cooperation with the EU and explore the possibility of negotiating various economic and trade agreements, including investment agreements," a commerce ministry spokesperson said when asked whether Beijing planned to restart talks over the EU-China Comprehensive Agreement on Investment.
"China and the European Union share extensive common interests and there are significant areas for cooperation in the economic and trade sectors," He Yadong said, adding that Beijing had noted Brussels' recent series of free trade agreements and its apparent push to diversify exports.
Trade tensions have risen between Beijing and Brussels after the European Commission, which handles trade policy for the 27-strong bloc, launched a probe into China-made electric vehicles that resulted in the imposition of tariffs of up to 45.3% last October.
But U.S. President Donald Trump’s global tariff offensive over the past year has brought the world's second- and third-largest economies into closer alignment.
Estonian Foreign Minister Margus Tsahkna told Reuters on Wednesday that he had discussed with China's top diplomat Wang Yi a "very important" EU-China free trade agreement that was different to the EU-China CAI, but added that China's support for Russia might slow down its completion.
Since the EU-China CAI talks stalled, the EU has concluded a free-trade agreement with New Zealand and advanced agreements with Kenya and Chile, while China has signed an upgraded pact with the Association of Southeast Asian Nations (ASEAN).
(Reporting by Joe Cash; Editing by Jacqueline Wong and Kate Mayberry)
An investment agreement is a contract that outlines the terms and conditions under which investments are made, including the rights and obligations of the parties involved.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations.
Global tariffs are taxes imposed on imported goods and services, which can affect international trade by making foreign products more expensive.
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