EU trade chief says China investment deal should remain frozen

Outgoing European Commission trade official Sabine Weyand has said the EU's 2020 investment agreement with China is obsolete and should remain in the "deep freezer".

Weyand made the remarks as Brussels weighs possible action on what she described as "macroeconomic imbalances" linked to the impact of China's economic model on the rest of the world.

She said the agreement should not be revived, and quoted former competition chief Margrethe Vestager as saying that if something has been in the deep freezer for a long time, it should not be taken out and served again.

The comments matter because they point to a firmer line from the European Commission at a time when trade tensions and concerns over market distortions remain part of the wider EU-China relationship.

Weyand is due to leave her post at the end of the month.

Her remarks amount to a rare public confirmation that the commission is considering new trade tools rather than moving to restore the stalled deal.

The 2020 investment agreement has remained politically sensitive and has not been brought into force.

It is not clear what specific measures Brussels may now pursue, or how quickly any new trade tools could be developed.

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