Investment deal to prop up European dealmaking in China

The investment deal between the Britain-less European Union and the world’s second-largest economy in China made last month is set to enforce European firms to secure assets in China in different sectors including insurance, healthcare, and automobile.  

The EU-China Comprehensive Agreement on Investment (CAI), which took almost seven years to reach, is seen to take one more year to enter into force. The deal, however, is not yet fully blown to tell whether it would provide rooms for mergers and acquisitions.

The agreement deal sealed on Dec. 30 allows European companies to operate in China in electric cars, telecom cloud services, and some businesses linked to air and maritime transport.

More so, EU firms will be given opportunities to own units in the automotive sector, many financial services, private hospitals, advertising, real estate, and environmental services, such as sewage.