The European Union's attempts to curb Chinese economic interests in Europe would result in a stern backlash from "suspicious" investors and businesses, China's EU envoy Zhang Ming said in an interview with the Financial Times on Thursday, adding that only cooperation can improve relations between Brussels and Beijing
MOSCOW (Pakistan Point News / Sputnik - 26th December, 2019) The European Union's attempts to curb Chinese economic interests in Europe would result in a stern backlash from "suspicious" investors and businesses, China's EU envoy Zhang Ming said in an interview with the Financial Times on Thursday, adding that only cooperation can improve relations between Brussels and Beijing.
The diplomat criticized EU plans to restrict Chinese companies' access to 5G networks and limit the opportunities for the Asian countries' firms, especially those with government backing, to purchase European companies, the newspaper reported. Zhang said that these plans could see Chinese investors divert funds elsewhere.
"Capital is very sensitive, and even cowardly in some cases. In case of any changes or developments, [investors] will feel highly vigilant or even be scared away," Zhang told the newspaper.
In a European Commission report published in March, EU leaders called China an "economic competitor" and a "systemic rival."
Zhang stated that his country sought positive relations with the European Union and wished to promote the principles of multilateralism and free trade.
"My colleagues and I are strongly committed to promoting China-EU co-operation, so I'm following the development with interest and concerns," the ambassador said.
Negotiations between China and the EU are still ongoing to finalize a new bilateral investment agreement. Talks initially began in 2014, and EU politicians have complained about the slow pace of negotiations, pointing the finger at Beijing. Zhang hit back at these claims, outlining that Beijing wanted to sign the best deal, not the quickest deal.
"And talking about the speed of the negotiations, I think it's better to be a down-to-earth turtle than a cunning rabbit," Zhang remarked.
The ambassador also queried whether an EU proposal to add a carbon border tax on countries that do not meet Brussels' climate standards was in line with World Trade Organization rules, the newspaper reported.
The European Union is China's biggest trading partner. In 2018, the EU imported 395 billion euros ($438 billion) worth of Chinese goods.
The United States has put significant political pressure on the EU, among its other allies, to restrict Chinese tech giant Huawei's access to 5G mobile telecommunications networks that are set for widespread launch in 2020.
