The European Union's representative to China is urging Beijing to create a "level playing field" for European businesses operating in the country, warning that failure to do so could affect foreign investment.

Since 2013, Beijing and the EU have been negotiating a comprehensive investment agreement that seeks to improve transparency and reciprocity. As trade tensions simmer between China and the United States, Ambassador Hans Dietmar Schweisgut said Wednesday he hopes "the current international context" will encourage China to move forward with their talks.

Schweisgut said at a Europe Day press briefing that "the level playing field we have been arguing for a long time needs to be established."

He said a "change in mood and atmosphere" for foreign investment was already emerging and could become more pronounced.