The EU-China Comprehensive Agreement on Investment took seven years to negotiate. Talks over the controversial investment agreement concluded in December 2020, but on 4 May the European Union suspended its ratification process after China imposed sanctions on numerous EU officials, political figures, and academics. China’s sanctions were in response to sanctions imposed by the EU on entities and individuals involved in running Uyghur camps in China’s Xinjiang region.
In order for the EU-China Comprehensive Agreement to enter into force, EU member states and the European Parliament must ratify the agreement. On 23 March, the EU Parliament canceled its meeting to review the agreement; on 4 May, EU Trade Commissioner Valdis Dombrovski stated that the European Commission has “for the moment suspended some efforts to raise political awareness on the part of the Commission, because it is clear that [the] current situation […] is not conducive to the ratification of the agreement”. Dombrovski’s comments suggest that the agreement is not suspended, but that it is on hold until China removes its sanctions.
IMPACT OF POLITICS ON EU-CHINA AGREEMENT
The goal of the investment agreement was to open up Chinese markets for European investments. As the China Briefing notes, the agreement will improve market access “for EU manufacturers in electric vehicles, telecoms, and private hospitals”. Given that German carmakers and manufacturers stand to benefit from the agreement, it is not surprising that German Chancellor Angela Merkel has been pushing for ratification of the investment agreement.
Despite its clear economic interest, Germany still speaks out against China on certain issues. At the Sixth German-Chinese Government Consultations on April 28 Merkel avoided the topic of Uyghurs, but she pushed China to abide by the International Labour Organization’s Standards on Forced Labor, which China has not ratified. China’s Premier Li Keqiang, however, urged Germany to boost trade ties but to avoid interference with China’s “internal affairs”. He went on to say that “as long as both sides respect each other's core interests and important concerns, as long as we communicate on the basis of equal treatment and mutual non-interference in each other's internal affairs ... reduce differences and focus on cooperation, then we can create favorable conditions for smooth dialogues and cooperation".
While members of the European Parliament are still on the sanctions list, it is unlikely that the Parliament will ratify the investment agreement. Even if China removes its sanctions, however, there is a question of whether the agreement should still be ratified. An agreement bringing China and the EU closer together raises the concern that the EU may no longer be able to comment on, and call out, China’s human rights violations moving forward. Chancellor Merkel’s decision to speak on labour issues and not directly address the Uyghur camps at the recent consultation may be an example of this already starting to happen. If this agreement is eventually ratified and EU member states choose to water down their comments against China, the EU may hurt its credibility and leave China with greater latitude to continue to carry out its current human rights violations against the Uyghur population.
Maria is an undergraduate student at the London School of Economics studying International Social and Public Policy. She is also taking additional courses in public international law and foreign policy analysis. Maria is interested in the intersectionality between international relations and conflict resolution. She is also the Vice President of TEDxLSE, and is currently interning at the Estonia-Asia Trade Agency.