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BRUSSELS, Dec. 31 (Xinhua) -- The European Union (EU) and its member states on Wednesday welcomed the completion of the investment agreement negotiations with China, hailing it as an important milestone in the development of EU-China relations.

The announcement of the completion of negotiations was made during a meeting between Chinese President Xi Jinping and German Chancellor Angela Merkel, French President Emmanuel Macron, President of the European Council Charles Michel and President of the European Commission Ursula von der Leyen via video link.

"Today, the EU &China concluded in principle negotiations on an investment agreement ... For more balanced trade &business opportunities," said von der Leyen on twitter.

"Tomorrow's post-COVID world needs a strong EU-China relationship, to build forward better," she added.

Michel welcomed the "political agreement achieved on negotiations on investment," saying "(the) EU remains committed to rules based international cooperation."

The German government said the investment agreement is a success for the German presidency of the Council of the EU.

The agreement provides European businesses with greater access to the Chinese market, creates a level playing field for companies on both sides and lays the groundwork for more sustainable development, the German government said in a statement on its website.

China is committed to opening up its markets to EU investors more than ever before, it said.

Germany's Federal Minister for Economic Affairs and Energy Peter Altmaier hailed the agreement as "a milestone in trade policy."

The breakthrough is "a great success and at the same time an expression of European cohesion and unity," said Altmaier.

"For European companies, the agreement means more market access and more legal security as well as a better competitive environment in China," he said.

"The dialogue between Europe and China has been strengthened and rebalanced in recent years. It continues," Macron tweeted.

Austria's Minister for Economic Affairs Margarete Schrambock said the agreement in principle "opens the door to a future market for our companies."