China and the European Union (EU) will soon launch negotiations over compensation for China's possible losses caused by the EU's enlargement on May 1

China and the European Union (EU) will soon launch negotiations over compensation for China's possible losses caused by the EU's enlargement on May 1. "We have completed the preparatory talks and the EU has agreed to hold further talks with us,” said Ma She, deputy director with the Department of European Affairs under the Chinese Ministry of Commerce. Ma made his remarks at the China-EU Economic and Trade Forum 2004 hosted by the Beijing-based University of International Business and Economics (UIBE). Despite the greater market for Chinese goods, the EU enlargement will certain bring short-term impacts, said Luo Hongbo, a senior researcher with the Institute of European Studies under the Chinese Academy of Social Sciences. With an improved investment environment, the EU's new members will attract greater investment, especially from Western Europe. Some of this money might have otherwise been invested in China, Luo told China Business Weekly.