China Announces Partnership with European Union Joint Investment Fund
At the 5th High Level Economic and Trade Dialogue held in Beijing on September 28th, the European National officially announced China's commitment to the Juncker Plan, an ambitious joint investment fund of €315 billion (US$352 billion). This would make China the first non-EU state to participate in the EU Commission's ambitious plan launched last year. According to Li Keqiang, the cooperation "would help promote bilateral investment, financial cooperation and joint exploration of the third-party market, and also reveals China's firm support for the euro's stability and EU solidarity." As for the other party, European Commission Vice President Jyrki Katainen suggested that the EU was hoping to improve relations with China in order to contribute to the progress of a mutually beneficial bilateral investment treaty.
Although neither party disclosed how much China would contribute financially, there were indications that details will be settled by the end of the year. Other topics of discussion included possible Chinese participation in the European Bank for Reconstruction and Development (EBRD), which works with businesses in developing countries to promote financial development and increased trade.
These new developments suggest a positive trend toward further globalization, gradually opening up Chinese markets, especially the financial market. Especially in light of China’s ongoing investments in Africa and Latin America, this agreement reflects a step away from risk towards more developed nations, potentially in order to breathe new life into its volatile financial markets and slowing economy.