An investment pact between the European Union and China is still possible, but both sides may wait until 2023 at the earliest to ratify the deal, said an analyst from risk consultancy Eurasia Group.
Despite the hiccup, Neil Thomas, China analyst at Eurasia Group, said it's "more probable than not" that the EU and China will in the longer term ratify the deal called the Comprehensive Agreement on Investment.
Thomas explained that the benefits of the EU-China investment deal include improved market access for European firms in China, as well as better rules on subsidies, state-owned enterprises and technology transfer.
But any ratification of the Comprehensive Agreement on Investment may not happen until 2023 at the earliest, said Thomas.
China's geopolitical footingBeyond the economic benefits of the investment pact, China could lose some geopolitical footing if the deal isn't eventually ratified, said Thomas.
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