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- The European Union Parliament has “frozen” a business investment deal with China for as long as Beijing keeps sanctions against E.U. lawmakers in place
- The investment pact was agreed upon in December after seven years of discussions between the E.U. and Beijing but is now in limbo
- The decision by the E.U. comes after Beijing imposed sanctions against 10 European politicians in response to the E.U.’s own sanctions against China
- Europe first imposed the sanctions against China as a response to alleged human rights breaches against Muslim Uyghurs in northwestern China
- Beijing has denied any wrongdoing regarding both the human rights breach allegations and the European sanctions
- Through state-run tabloid paper the Global Times, Beijing has warned the E.U. that by freezing or cancelling the investment deal, the bloc risks “shooting itself in the foot”
The European Union Parliament has “frozen” a business investment deal with China for as long as Beijing keeps sanctions against E.U. lawmakers in place.
The investment pact, known as the E.U.-China Comprehensive Agreement on Investment, was finally agreed upon in December 2020 after seven years of discussions.
The deal would solidify Beijing as a trusted trading partner for the bloc while ensuring fair treatment for E.U. companies and investors operating in China.
However, the major deal is now in limbo until Beijing agrees to lift some recent sanctions against the European Parliament.
In response to European sanctions against Chinese officials in light of alleged human rights breaches in northwestern China, Beijing imposed its own set of sanctions against E.U. politicians in March. The E.U.’s sanctions were in relation to the mass detentions of Muslim Uyghurs by the Chinese government.
E.U. members of parliament have slammed the new Beijing sanctions and passed a resolution to “not consider any talks on ratifying the E.U.-China agreement” while the sanctions remain.
“Parliament condemns in the strongest possible terms the baseless and arbitrary sanctions recently imposed by the Chinese authorities on several European individuals and entities, including five Members of the European Parliament,” an E.U. Parliament press release said on Thursday.
“Members state that the move by Beijing is an attack on fundamental freedoms and urge the Chinese authorities to lift these wholly unjustified restrictive measures.”
The business deal freeze was passed with 599 votes in favour, 30 against and 58 abstentions.
United Nations rights experts claim at least one million Muslims are detained in camps in Xinjiang, where the Chinese government is accused of severe human rights abuses such as torture, forced labour and sterilisations.
China’s response
Beijing denies any wrongdoing in relation to both the Xinjiang camps and the E.U. sanctions.
China has hit back at the frozen investment deal through the Global Times, a nationalist tabloid paper controlled by the Chinese Communist Party.
The Global Times reported that Chinese Foreign Ministry spokesperson Zhao Lijian said Beijing’s sanctions on E.U. politicians were “necessary” and came as a response to the E.U.’s sanctions against China.
“He urged the E.U. to reflect on this, enhance mutual understanding through dialogue and communication, and properly manage differences,” the Global Times said.
The paper warned the E.U. that by freezing or cancelling the investment deal with China, the bloc risks “shooting itself in the foot” given the economic benefit the deal would bring both countries.
“China has reiterated on many occasions that the China-E.U. investment agreement is a balanced and win-win agreement. It is not a gift from one side to the other and it serves the interests of both sides.”
The tabloid went as far as to say the decision to freeze the deal was “probably” a result of pressure from the U.S. and some institutions in Europe attempting to use the deal to bargain for a new internal power distribution.
“But the E.U. should make it clear that no matter who or what drives them, it is impossible to interfere in China’s domestic affairs using any political tactic,” the paper said.
