China and Europe reach a major agreement! The cross-border e-commerce industry is shaken

Last night, a major event with far-reaching impact took place! The China-EU Investment Agreement, which has been under discussion for more than seven years, was finally signed yesterday!

This agreement aims to establish a bilateral investment system between China and Europe. It has gone through 35 rounds of negotiations since 2013 , and has experienced many unexpected events during this period. It is a very ill-fated agreement, but it was finally won this year while the United States was "ownerless"!

As you can see, the number of negotiations this year is very high, almost twice that of last year. In the final analysis, it is because of the changes brought about by the epidemic this year. The United States, Europe's traditional ally, is busy dealing with the domestic epidemic. Trump needs to shift to a shrinking global strategy to save fiscal spending. The various withdrawal operations have made Europe very dissatisfied, and a gap has appeared in the alliance with the United States.

On the contrary, China has demonstrated strong coordination capabilities and industrial advantages during the epidemic, so Europe will be more inclined to develop deeper cooperation with us. In 2020, China replaced the United States for the first time and became the EU's largest trading partner. Therefore, improving trade relations as soon as possible will be a huge incentive for both sides.

Therefore, taking advantage of this year's US election and the transfer of power, we quickly passed RECP and the China-EU Investment Agreement . Both are major plans that have been discussed for a very long time but have not been finalized due to the United States. They are also far-reaching and long-term plans.

However, this China-EU Investment Agreement is different from RECP. Although this investment agreement does not involve tariff issues between the two sides, it is still closely related to our cross-border industry and will have a significant impact on the market environment and currency exchange rates of both China and Europe. Therefore, everyone must also understand these possible changes.

The specific content of the agreement involves many aspects, which can be generally divided into the following four points:

1. Ensure mutual investment protection, respect intellectual property rights, and ensure transparency of subsidies on both sides;

2. Improve market access conditions for both parties

3. Ensure that the investment environment and regulatory procedures are clear, fair and transparent

4. Improve labor standards and support sustainable development.

The most important ones are market access and fair and transparent supervision, which are the two that are most affected by cross-border industries. The agreement requires in detail that both parties need to open up markets that were previously not allowed to the other party's companies, such as new energy vehicles, cloud computing services, financial services, and health.

In addition , transparent and fair supervision is required when dealing with investment and business activities of both parties. For example, Huawei's 5G equipment has been discriminated against and orders have been cancelled without reason in Europe and the United States. After the agreement is reached, these situations will be stopped. This means that our Chinese companies can conduct business activities in more markets in Europe, and sellers will also receive fairer and more transparent treatment.

In addition to the above, the impact of this agreement on us is more reflected on the third party outside the agreement - the United States.

As early as around the 20th of this month, some media revealed that China and Europe might complete an investment agreement by the end of the year . At that time, US National Security Advisor Sullivan came out and suggested that the EU should discuss this matter with the United States first and not rush to sign with China.

Because Europe and China were the first to reach an investment agreement, there are some concessions made by us in the agreement, many of which should have been given to the United States in the China-US agreement, but now they are taken by Europe. Therefore, the United States will be in a very passive position in the subsequent trade negotiations with these two countries . Both China and Europe can use this investment agreement as a bargaining chip to demand more concessions from the United States.

The combined economic size of China and Europe is almost equal to that of two United States, a giant economy with a population of over 3 billion and about half of the global GDP, and all this has nothing to do with the United States . This is a huge blow to the US government and the market. This blow will seriously affect the status of the US dollar, and the US dollar exchange rate will enter a long period of decline.

Moreover, in order to counter the new China-Europe alliance, the US government will inevitably take tough measures between the trade market and China-Europe relations after Biden officially takes office, including but not limited to more aggressive currency and trade strategies, and making more concessions to attract further cooperation between China, Europe and the United States.

These changes may be good. In short, sellers on the US site must be prepared for policy turbulence next year. The threshold and market business environment for Chinese sellers in the European market will definitely be greatly improved. Everyone should hurry up and prepare to enter the European market! I have an official Amazon European site registration guide on hand, which will introduce the precautions for filling out each step in detail.