China is set to make good on a promise to invest two billion euros in the European Union's new infrastructure fund at a summit in Beijing on Wednesday, officials say, a gesture aimed partly at easing tensions over other issues.
From massive Chinese steel exports to Beijing's militarization of islands in the South China Sea, the EU is nervous about the activities of its second-largest trading partner.
But Brussels can claim one small victory in persuading China to sink money into an EU-controlled fund over which Beijing has no direct say.
"China has a lot of liquidity and needs to invest it somewhere," one senior EU official said, asking not to be named. "We've made it quite clear this is a European fund over which China has no sway, but Chinese banks can expect to see returns on their loans."
At the EU's annual summit with China, China's premier Li Keqiang will make an initial investment of about two billion euros ($2.98 billion) in a financing vehicle linked to the European Union's 315-billion-euro European Fund for Strategic Investments, officials familiar with the talks told Reuters.
The deal that was first discussed a year ago should be a success for European Commission President Jean-Claude Juncker, who will travel to Beijing with European Council President Donald Tusk. Juncker faced scepticism in 2014 when he proposed the fund because EU governments are putting in only seed money.
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From massive Chinese steel exports to Beijing's militarization of islands in the South China Sea, the EU is nervous about the activities of its second-largest trading partner.
But Brussels can claim one small victory in persuading China to sink money into an EU-controlled fund over which Beijing has no direct say.
"China has a lot of liquidity and needs to invest it somewhere," one senior EU official said, asking not to be named. "We've made it quite clear this is a European fund over which China has no sway, but Chinese banks can expect to see returns on their loans."
At the EU's annual summit with China, China's premier Li Keqiang will make an initial investment of about two billion euros ($2.98 billion) in a financing vehicle linked to the European Union's 315-billion-euro European Fund for Strategic Investments, officials familiar with the talks told Reuters.
The deal that was first discussed a year ago should be a success for European Commission President Jean-Claude Juncker, who will travel to Beijing with European Council President Donald Tusk. Juncker faced scepticism in 2014 when he proposed the fund because EU governments are putting in only seed money.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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