The EU-China Comprehensive Agreement on Investment, agreed by negotiators in December, after seven years of talks, aimed to put EU companies on an equal footing in China and cement Beijing's status as a trusted trading partner. But Beijing imposed sanctions in March, on 10 EU politicians, as well as think-tanks and diplomatic bodies, in response to Western sanctions against Chinese officials accused of the mass detentions of Muslim Uyghurs in north western China. After seven years of negotiations, negotiators reached an agreement in December to place EU companies on an equal footing in China and solidify Beijing's standing as a reliable trading partner.
However, in March, Beijing placed sanctions on eleven EU lawmakers, research institutes, and diplomatic organisations in retaliation to Western penalties against Chinese authorities accused of mass detentions of Muslim Uyghurs in northwest China. Five members of the European Parliament and its human rights subcommittee have been sanctioned by China. China made a blunder in its sanctions policy. They should reassess their actions after learning from their mistakes. The Comprehensive Agreement on Investment has been "placed on ice" as a result of China's sanctions, according to Reinhard Butikofer, a German EU legislator who was singled out by Beijing.
The EU's sanctions, like those of the United Kingdom and the United States, are based on international law, while the EU's measures, like those of the UK and the US, are aimed at violations of human rights protected by UN treaties.
Beijing has denied any misconduct on the part of the Chinese government. The parliament "necessitates that China lift the restrictions before dealing with (the investment treaty)," according to the resolution, which is not legally binding but now represents the assembly's official position. "Relations between the EU and China may not continue as usual," it warned.
China's envoy to the EU responded to the resolution by saying the investment agreement was "mutually advantageous" and not a "favour" from one side to the other. It claimed that China's sanctions were a proper response to EU measures. At a daily briefing on Friday, Zhao Lijian, a spokesperson for China's foreign ministry, expressed hope that the EU would "conduct less emotional venting and more sensible thinking, and make reasonable judgments in line with its own interests."
For both, China and the EU, the standoff is a setback. The pact's ratification would give European investors and intellectual property rights in China, a stronger level of protection. According to European diplomats, China hoped to gain a better international reputation as a trustworthy and courteous economic partner. At least 1 million Muslims are jailed in Xinjiang camps, according to activists and UN rights experts. China is accused of utilising torture, forced labour, and sterilising by campaigners and some Western politicians. China denies human rights violations in Xinjiang, claiming that its internment centres provide vocational training and are necessary in the fight against extremism.
At the point when gotten some information about the Parliament's vote during a question-and-answer session later Thursday, EU Trade Commissioner Valdis Dombrovskis said: "This is something which we have been making clear additionally on the European Commission's side. We can't look at this ratification process in isolation from the larger picture of EU-China ties. The fact that China has imposed retaliatory measures, including against members of the European Parliament, is certainly not beneficial to progress toward ratification of the agreement,” he said. According to a spokesperson for the European Commission, the vote does not signal the end of the deal. Despite the fact that the EU executive "takes note" of the Parliament's vote, she stated that Brussels "continues to believe that CAI would benefit Europe."