EU officials on Wednesday held a videoconference with Chinese President Xi Jinping where they concluded an investment deal "in principle."
"Today, the EU & China concluded in principle negotiations on an investment agreement," European Commission head Ursula von der Leyen wrote on Twitter after the meeting.
"We are open for business but we are attached to reciprocity, level playing field and values," she wrote.
The meeting, which was also attended by European Council President Charles Michel, German Chancellor Angela Merkel and French President Emmanuel Macron, focused on the progress that was achieved on the negotiations.
"Following intensive negotiations carried out by the European Commission on the EU's side, the EU and China concluded in principle the negotiations for a Comprehensive Agreement on Investment (CAI)," the European Council and the European Commission also confirmed in a written statement.
"This delivers on the commitment made at the EU-China summit in April 2019 where the two sides agreed to aim for conclusion of negotiations by the end of 2020," it added.
The agreement, which aims to rebalance the trade and investment relationship between the EU and China, still needs the approval of the European Parliament next year.
"The Agreement will also significantly improve the level playing field for EU investors by laying down clear obligations on Chinese state-owned enterprises, prohibiting forced technology transfers and other distortive practices, and enhancing transparency of subsidies," the statement said.
The deal also includes commitments on the environment and climate, the EU said, pointing to the Paris agreement, as well as separate labor standards.
"This Agreement will uphold our interests and promotes our core values. It provides us a lever to eradicate forced labour,” von der Leyen stressed.
During the meeting, Michel recalled the invitation for Xi to join an EU-China leaders' meeting to be held in Brussels in 2021.
The EU leaders also reiterated their concerns over the human rights situation in China, as well as the recent developments in Hong Kong, according to the EU's written statement.
