China wanted Huawei protections in EU trade deal

Finbarr Bermingham at SCMP got a copy of the draft EU-China trade agreement that included

China reserves the right not to open this service to investors from countries that block or arbitrarily discriminate against Chinese telecommunications enterprises in law or policy.

Ultimately, the clause apparently was struck, although the final text has not been released.

The deal, agreed on Dec 31, allowed European companies to own 50% of cloud data centers in China. Angela Merkel was the lead proponent for the mega-billion trade deal, backed by Emmanuel Macron. Trump and Pompeo strongly opposed the deal.

China buys $200 billion from Europe every year. EU investment in China is $120 billion. Mercedes sells twice as many cars in China than in Germany.

In the long run, that gives China enormous bargaining power.

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