There is no new trade agreement between the EU and China in 2025, as discussions over the previously concluded Comprehensive Agreement on Investment (CAI) remain frozen. However, in November 2025, China's Ministry of Commerce expressed willingness to explore negotiating new economic and trade agreements with the EU, including the possibility of a new investment pact.
Comprehensive Agreement on Investment (CAI) status: The CAI, concluded in December 2020, has not been ratified by the European Parliament and remains frozen.
China's recent proposal: China has signaled a potential restart of negotiations for a new agreement or investment pact with the EU.
Reason for renewed discussion: This renewed interest comes as both sides navigate a shifting global trade landscape, particularly in light of recent U.S. trade policies.
Current status: Discussions are in the early stages, with China's commerce ministry stating its willingness to cooperate. The possibility of substantive negotiations depends on the EU's stance on various issues.
Key issues: The relationship is strained by geopolitical factors, including China's support for Russia in the Ukraine war, which creates political barriers to a new deal.
As of November 2025, there is no new, signed, or ratified comprehensive trade agreement between the EU and China.
The primary agreement that has been under discussion is the Comprehensive Agreement on Investment (CAI), but its ratification by the European Parliament was frozen in May 2021 following an exchange of sanctions. The deal is not in force.
Current Situation in 2025
Frozen
CAI: The CAI, which was concluded in principle in December 2020,
remains unratified and its future is uncertain.
Chinese overtures: In November 2025, China's Ministry of Commerce expressed a renewed willingness to explore and negotiate various trade and investment agreements with the EU to enhance cooperation and diversification.
Trade Tensions Remain: Despite China's recent proposals, significant trade tensions persist, particularly regarding China-made electric vehicle tariffs and China's export controls on rare earth minerals, which are crucial for European industries.
Dialogue on specific issues: The EU and China have established special channels for ongoing dialogue to manage specific trade issues, such as ensuring a steady supply of rare earth materials and addressing export permits, rather than a broad new agreement.
In short, while China is proposing new possibilities for trade agreements, no new comprehensive deal has been reached or implemented in 2025; relations are largely characterized by managing existing tensions and exploring future options.
https://www.google.com/search?q=what+is+the+trade+agreement+by+the+EU+and+China+in+2025
Norb Leahy, Dunwoody GA Tea Party Leader
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