The new trade agreement with China looks like a pure win for the EU. EU businesses will no longer be subject to the technology sharing and joint venture requirements that the Chinese imposed as a condition of doing business in the Middle Kingdom for years. Why would the Chinese government make that unilateral concession?
Because, for them, the significance of the agreement is geopolitical, not economic. China is more or less self-sufficient on tech issues at this point; it no longer needs the old technology sharing requirements. What it does need is EU neutrality in the battles to come with the United States. What better way to keep the Europeans quiet than to create political and economic leverage by making doing business with China more profitable for their companies? And what better time to do it, before Biden takes office and tries to ally himself with the EU against China on trade issues?
It’s a preemptive strike–a Trojan Horse with Chinese characteristics. Unlike Mr. America First, Biden is worried about it. He should be.