Beijing proposes to raise sanctions against MEPs, in the hope of relaunching the EU-China investment agreement

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Beijing proposes to raise sanctions against MEPs, in the hope of relaunching the EU-China investment agreement
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The European Parliament and China are “in the last stages” of the process of suppressing the sanctions of reprisals imposed by Beijing on a handful of legislators in 2021, a controversial decision which caused the collapse of an investment agreement with high issues.

The opening comes in the middle of the growing speculation of a Reset in Eur-Chinese relations Driven by Donald Trump's disruptive policies, who antagonized allies and adversaries and sent nations to a race for new partnerships.

“Discussions with the Chinese authorities continue and in their last stages,” said a spokesperson for Parliament in a statement.

“It has always been the intention of the European Parliament to raise the sanctions and to resume relations with China.”

The president of the Parliament, Roberta Metsola, directs the negotiations and informs the leaders of the political groups “once the Chinese authorities officially confirm that the sanctions have been lifted,” the spokesman noted.

The EU Chinese mission did not immediately respond to a request for comments.

The political dispute dates back to March 2021, when the 27 states states accepted to sanction Four Chinese officials and an entity accused of having committed human rights violations against the minority of Uighur muslin in the Xinjiang region.

Beijing retaliated with restrictions in tit-for-tat, targeting ten European people, including five deputies and four entities.

MEPs were specifically selected because of their work in EU-China relations and foreign interference. Michael Gahler (Germany / EPP), Raphaël Glucksmann (France / S&D), Ilhan Kyuchyuk (Bulgaria / Renew Europe) and Miriam Lexmann (Slovakia / EPP) are still according to Reinhard Butikofer (Germany / Greens) left the hemicycle last year.

China's blacklinted entities included the Parliament's subcommittee on human rights and the EU Council Political and Security Committee (PSC).

It is not clear if the discussions led by Metsola aim to raise all the sanctions in place or only to those against the seated deputies.

A controversial affair

The fact that Beijing went to democratically elected officials, the legislators met a furious response in Brussels and through the block. A few months after reprisals, Parliament voted To freeze the ratification of the complete investment agreement (CAI) that the EU and China had announced at the end of 2020.

The agreement, concluded only in principle, aimed to open market access for EU investors and guarantee more equitable treatment for EU companies operating in China. The text was based on commitments to relieve long -standing friction points on public companies, industrial subsidies and forced technology transfer.

Although initially praised as a benchmark, the agreement was quickly criticized for what criticisms said they were insufficient provisions concerning labor rights. International organizations and the media have detailed a policy of forced work and political indoctrination within mass detention camps in Xinjiang. The facilities were also prey to accusations of torture, disappearance, forced sterilization and sexual violence.

After the dispute in 2021, the CAI was abandoned by Brussels and never brought to the table, despite the repeated attempts by Beijing to relaunch the text.

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Since the signing, market access in China has become increasingly restrictive For foreign companies due to strict regulations, government pressure and geopolitical tensions, precipitating a dive into investment flows and business confidence.

When asked if diplomatic opening could justify the rescue of the agreement, the European Commission avoided speculation. “We will cross this bridge when we are so far away,” a spokesman for the Commission said on Thursday.

Faced with Trump's punitive prices, Brussels has intensified its commitment with other countries around the world, such as Canada, Norway, Iceland, New Zealand and the United Arab Emirates, to consolidate alternative trade routes for EU exporters.

Earlier this month, Ursula von der Leyen had a telephone call with Chinese Prime Minister Li Qiang, fueling reset after years of confrontation. Reading published by the Li office was notably optimistic, highlighting a “quantity of regular growth” in bilateral links.

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Since then, the Commission has tried to temper enthusiasm, highlighting the continuous support of Beijing in Moscow and the risk of flooding the EU market with cheap goods that China can no longer sell to America due to prohibitive tariffs.

The optics of a rapprochement of the EU-China could derail the hopes of reaching a compromise with the Trump administration, which continues a hard line on Beijing. Brussels, however, also clearly indicated that the block would not try to decoupled From the Chinese economy as a condition to win a Trump's prices.

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