The EU and China have a long-standing trade relationship that dates back to the early 1970s. Over the years, they have strengthened their ties by signing various trade agreements, which have led to an increase in trade and investment between the two regions.

The most recent agreement signed between the EU and China is the Comprehensive Agreement on Investment (CAI). Negotiations for this agreement started back in 2013 and were finally concluded in December 2020. The CAI seeks to provide European companies with better access to the Chinese market and to address issues related to market access, level playing field, and sustainable development.

Under the CAI, China has committed to removing various restrictions on European companies, such as those related to joint ventures and forced technology transfers. In return, the EU has committed to gradually reduce its tariffs on Chinese goods, which will make it easier for Chinese companies to export their products to Europe.

The CAI has been hailed as a significant milestone in the EU-China trade relationship, but it has also been met with criticism. Some argue that the CAI does not go far enough in addressing issues related to human rights abuses and forced labor in China. Others argue that the timing of the agreement is poor, given the strained relationship between the EU and China due to issues related to COVID-19 and geopolitical tensions.

Despite these criticisms, the EU and China remain committed to strengthening their trade relationship. In addition to the CAI, the two regions have also signed other trade agreements, such as the EU-China Comprehensive Strategic Partnership and the EU-China Joint Declaration on Circular Economy Cooperation.

As the EU and China continue to work towards a closer trade relationship, it is important for both sides to address any issues that may arise and to ensure that the agreements they sign are beneficial for all parties involved. With the right measures in place, a strong EU-China trade relationship can lead to increased economic growth and job creation, which is essential for both regions.