Political outreach on the massive EU-China trade agreement stalls after Beijing imposes counter-sanctions over Uyghur rights concerns.
Efforts to ratify a significant investment deal between the European Union and China have been effectively suspended following a tit-for-tat sanctions dispute between the two parties. The European Commission announced on May 4 that political outreach to promote the agreement has halted after tensions escalated over China’s treatment of its Uyghur minority population in Xinjiang.
Valdis Dombrovskis, the EU’s executive vice-president, stated that the current state of relations between Brussels and Beijing was “not conducive” to the ratification of the EU-China Comprehensive Agreement on Investment (CAI). He emphasized that EU sanctions against China, combined with Chinese counter-sanctions – including measures targeting members of the European Parliament – have created a difficult environment for the deal’s approval.
Although the agreement has not been formally suspended, Dombrovskis’ remarks suggest that the escalating tensions have dampened the EU’s willingness to push forward with the deal. The EU and China reached a historic investment agreement in December after seven years of negotiations, with significant support from German Chancellor Angela Merkel, due to the importance of the Chinese market for German manufacturers.
