The EU-China Comprehensive Investment Agreement (CAI) might look like a free lunch for European companies interested in operating in China but the push for bifurcation of operations both from U.S. and Chinese side could bring unintended negative consequences from such deal.

China and the EU are staunch supporters of multilateralism, and the recent BIT agreement, underpinned by institutionalized rules for win-win cooperation, will significantly shore up confidence in cooperation in global governance.

The treaty is part of a strategic choice made by China, whose interests align with those of the European Union. For the EU, the BIT is a well-thought-out strategic choice based on the world’s post-pandemic economic landscape.

Both China and the European Union have a strong desire to strengthen cooperation, despite the inevitability of future challenges. Green development, the digital economy and global challenges will increasingly be the new driving forces.

Europe’s global interests have long been aligned with those of the United States, but as a new Cold War intensifies between China and the US, the EU states are diverging from what they see as brash US action.

The nations of the ‘European Rim’ face a tough decision in the midst of a post-COVID US-China decoupling – to look east or west for investment and development opportunities? Regardless of the investment sources, the European Rim must prioritize middle class-oriented growth to pursue full employment and economic stability.

As the US-China split seems to intensify, each state within the European Union may soon have to face a difficult decision— Beijing or Washington?

Europe has been forced to strike out on its own, frequently dropping its deference to the United States. Now it awaits the outcome of the U.S. election. But even if Biden wins, the U.S. may not regain its position as the world’s center of gravity. The interests of China and Europe will steadily converge.

The European Union wants to forge stronger bonds with China because its members know what that means. As the world’s second-largest economy, and with its immense consumer market, China has a lot to offer.

The COVID-19 pandemic has ushered in an era of seismic change that has strained relations. But if handled properly, it’s an opportunity to establish even stronger ties going forward.