China and the European Union (EU) are getting closer to reaching the long-awaited business investment agreement, European officials said on Monday.
The deal, which is expected to be finalized this week, will give EU companies better access to the Chinese market and improve competition conditions.
Discussions on investment agreements have been underway since 2014 but stalled for years as Beijing allegedly failed to make promises to lift sanctions on EU investment.
However, due to trade tensions between the United States and China may have helped change its position and create an agreement between Beijing and Brussels, officials said.
Under the agreement, China will reportedly open up its manufacturing sector to EU companies, as well as construction, advertising, air transport, and telecommunications.
One of the important issues is China's demand for access to the EU energy market, but due to its sensitivity to national security, Europe is offering Beijing access to a small part of the renewable energy sector.
In addition, the agreement is also designed to remove investment barriers in China such as joint venture requirements and limit foreign ownership in certain industries.
However, discussions on investment protection are likely to continue until next year and will be resolved later according to the agreed timeline.
