On February 3rd, ASPI Vice President Wendy Cutler joined a moderated discussion with the European Commission Director-General for Trade Sabine Weyand and PIIE Nonresident Senior Fellow Anabel González on the recently concluded EU-China Comprehensive Agreement on Investment (CAI).

While Weyand explains how the deal benefits the EU and “rebalances” its relationship with China, Cutler raises concerns on how this agreement might complicate Transatlantic cooperation on China challenges. “There is going to be a bit of an uneasy feeling on behalf of the United States,” she remarks, as the EU concluded this deal on the eve of the Biden presidency, fully knowing of his Administration’s priority to work with allies and partners on China matters. She warns that further economic integration between the EU and China flowing from the CAI could “affect the willingness and enthusiasm for Europe to use its toolbox against China.” Cutler also opines that this deal is a major geostrategic victory for China as it seeks to drive wedges between the U.S. and its allies and partners.