The European Union and China are two of the largest economies in the world and their relationship has been the subject of much scrutiny in recent years. One of the most common questions asked is whether the EU has a free trade agreement with China.

The short answer is no, the EU and China do not have a free trade agreement. However, this doesn`t mean that there is no trade between the two regions. In fact, China is the EU`s second largest trading partner after the United States. In 2020, the total trade in goods between the EU and China amounted to €586 billion.

Despite not having a free trade agreement, the EU and China have held negotiations to achieve one. In 2013, they launched negotiations for an investment agreement that would promote bilateral investment and establish clear rules for investors from both regions. After seven years of negotiations, the EU and China reached an agreement in principle in December 2020.

The agreement, known as the EU-China Comprehensive Agreement on Investment (CAI), is still awaiting ratification by the European Parliament. However, it has already been met with criticism from some European lawmakers who argue that it does not go far enough in addressing human rights abuses by the Chinese government.

In the absence of a free trade agreement, the EU and China trade under the World Trade Organization`s rules. This means that both regions have to abide by the same rules when it comes to trade. However, the lack of a free trade agreement means that some tariffs and barriers are still in place, making trade between the EU and China more expensive and complex than it could be.

In conclusion, the EU and China do not have a free trade agreement. However, negotiations for an investment agreement have recently been concluded, although the agreement is still awaiting ratification. Despite this, the two regions continue to trade under the rules of the World Trade Organization, though some tariffs and barriers still exist. As the relationship between the EU and China continues to evolve, it remains to be seen whether a full free trade agreement will be reached in the future.