China and the European Union are about to make important steps to reconcile, with a potential reprise of talks on trade deals, after Donald Trump’s tariff war put a dent into their relationship with the US.
In an appeasement sign, Brussels and Beijing are in talks to drop the retaliatory sanctions on lawmakers that the two imposed back in 2021 over political disputes on human rights violations in the Chinese Xinjiang region.
The EU sanctioned four Chinese officials and an entity as a whole amid accusations of human rights violations against the Uyghur Muslim minority. The move prompted China to retaliate with sanctions on five then sitting MEPs and four EU entities, including the European Parliament’s Subcommittee on Human Rights and the EU Council’s Political and Security Committee (PSC). Four of the MEPs are still in parliament, while one left the role. They hail from different member states and political parties within the parliament and were selected due to their roles in EU-China relationships.
Currently, European Parliament’s president Roberta Metsola is negotiating with China, and according to a spokesperson, “discussions with the Chinese authorities are continuing and are in their final stages.” Metsola will inform the European parties of any updates.
The retaliatory sanctions halted the ratification of the comprehensive investment agreement (CAI) between the EU and China, with the European Parliament voting to freeze it until further notice. China tried over the years to restart the ratification process, but in vain. The agreement would have made it easier for EU companies to operate in China and get a fairer treatment than local companies, a long-standing friction between the bloc and the Asian superpower. The CAI received criticism at the time due to the lack of a serious look at labour rights.
It is unclear whether this lift of sanctions will pave the way for a revamp of the CAI, with the European Commission calling off speculations on the issue. However, the EU has been looking around the globe for new trade partners in recent weeks as the US has grown increasingly erratic under Trump. European Commission president Ursula von der Leyen spoke with Chinese Prime Minister Li Qiang in April. Still, Brussels is trying carefully to avoid further antagonising Trump and his hard stance against China.
