Prof. Gulshan Sachdeva(Jawaharlal Nehru University Delhi)

After 7 years of negotiations, the EU & China have finally agreed to a Comprehensive Agreement in Investments (CAI), which will replace 25 bilateral investment treaties. CAI will serve as an important tool to open Chinese markets for EU companies. Despite the talk of a 'geopolitical' EU and a common transatlantic front against assertive China, the deal has once again shown that what matters most to its member states is economics & some EU countries project it as a sign of their strategic autonomy from the US.
With prospects of liberal investment opportunities in a lucrative Chinese market, the 'decoupling' from China narrative will become weaker in Europe. Despite labeling China as a 'systemic rival' and 'economic competitor', Brussels does not want to be on the wrong side of a rising power. The CAI deal rather shows that it is ready to take advantage of emerging geopolitical dynamics in the Indo-Pacific.