China and the European Union have reached a deal on a long-awaited investment treaty, after a video meeting between top leaders in Europe and Chinese President Xi Jinping on Wednesday.

“Today, the EU and China concluded in principle negotiations on an investment agreement,” said President of the European Commission Ursula von der Leyen. “We are open for business but we are attached to reciprocity, a level playing field and values.”

Von der Leyen said the deal would increase transparency of China’s state-owned enterprises, stop forced technology transfers and “provide a lever to eradicate forced labor.” She added that the post-pandemic world needed a strong EU-China relationship based on “cooperation, reciprocity and trust.”

During the video call, Xi met with von der Leyen and President of the European Council Charles Michel, with German Chancellor Angela Merkel and French President Emmanuel Macron also taking part. The meeting marked an end to seven years of negotiations.

The EU said in a statement that the deal was of “major economic significance” and bound the parties into a values-based investment relationship. It would help rebalance EU-China trade ties and make sure that companies and investors from Europe enjoyed fairer treatment.

China had committed to implementing the Paris Agreement on climate change, as well as parts of the International Labor Organization conventions that it had ratified, the EU said. The country would also work toward ratifying international conventions against forced labor, it added.

On their part, EU leaders attending the meeting “reiterated their serious concerns about the human rights situation in China, including developments in Hong Kong,” the statement read.

Under the deal, EU companies face fewer barriers to investing in China, with some joint-venture requirements and foreign equity caps removed. Limitations remain in place on industries such as automotives, aviation, health care and internet services.

Beijing would not have signed up to the deal without some promise of advantage, said Hosuk Lee-Makiyama, director of the Brussels-based think tank European Centre for International Political Economy.

“No major power, not least China, gives anything for free, so there will be a trade-off. It’s just not in the agreement,” he told Reuters, adding that enforcement might be difficult for an investment deal, as compared to a trade deal.

Both sides will need to ratify the pact. EU officials have projected implementation to start in early 2022.

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