EU-China retaliatory sanctions could jeopardize a new investment agreement

Flags of the European Union (left) and China.

Nelson Ching | Bloomberg | Getty Images

Worsening tensions between the European Union and China could jeopardize an investment agreement that the two sides have recently negotiated.

The EU imposed sanctions on four Chinese officials and a human rights abuse body in northwest China’s Xinjiang region on Monday. The move was part of a coordinated action against Beijing by the US and its allies, including the United Kingdom and Canada.

China quickly retaliated against the EU, announcing its own blacklist of 10 people – including MEPs – and four entities.

Beijing’s response has also prompted warnings from several members of the European Parliament or MEPs, saying they would not ratify the EU-China investment agreement, which was agreed in December.

“Lifting sanctions against MEPs is a precondition for us to enter into talks with the Chinese government on the investment agreement,” said Kathleen van Brempt, a left-leaning Socialist and Democrat MEP.

S&D is the second largest political group in the European Parliament, with 145 Members.

And those targeted by Chinese sanctions weighed.

Reinhard Bütikofer, a German MEP, said in a Twitter post that ratification of the EU-China agreement “does not become more likely” after Beijing imposed sanctions to “punish” free speech.

Bütikofer is a Member of the Greens / European Free Alliance and chairman of the Chinese delegation to the European Parliament.

Meanwhile, Slovak MEP Miriam Lexmann of the center-right European People’s Party group said in a tweet that China’s actions “will make it clear that it is not interested in being a partner, but rather a systematic rival that undermines fundamental values ​​and principles.”

The European Parliament is due to vote on the EU-China investment agreement in early 2022, S&D said. The negotiations lasted seven years, and the agreement, if ratified, would allow European investors “unprecedented access” to the Chinese market, European Commission President Ursula von der Leyen said in December.

But just before Monday’s retaliatory sanctions, some MEPs have raised three major concerns about the deal, calling into question its adoption.

Beijing is calling on the EU ambassador

Beijing said in a statement that its Deputy Foreign Minister Qin Gang summoned Nicolas Chapuis, the EU ambassador to China, on Monday night to protest against EU sanctions.

A statement in Mandarin on Tuesday said EU sanctions on China were based on “lies and misinformation” about Xinjiang, according to a CNBC translation. He also warned the EU not to further worsen relations between Europe and China.

Human rights groups such as Amnesty International and international organizations, including the United Nations, have accused China of holding more than 1 million Uighur Muslims and other minorities in detention camps.

In a joint statement released on Monday, the US Secretary of State, as well as the foreign ministers of Canada and the United Kingdom, claimed that “China’s extensive repression program includes severe restrictions on religious freedoms, use of forced labor, mass detention in camps. hospitalization, forced sterilization and the concerted destruction of Uyghur heritage. “

China has repeatedly denied allegations of forced labor and argued that the camps are re-education camps to eliminate extremism and teach people new professional skills.

– CNBC’s Evelyn Cheng and Silvia Amaro contributed to this report.

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