© Associated Press
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The EU-China investment agreement reached last year is at stake because of recent problems in Brussels-Beijing relations.
This was confirmed by consistent comments by the European Commissioner for Trade and the European Commission itself in the last 24 hours, after some confusion about how the bloc responds to growing tensions.
A few weeks ago, a little after the first sanctions imposed on China by the EU for the last 31 years because of the rights of the Uighurs, Beijing replied with measures against MEPs (among them was Bulgarian MEP Ilhan Kyuchyuk) and experts, EU citizens for activities against the country, such as “lies and misinformation”.
Technically, but not politically
Late last year, the bloc reached a heavily criticized investment agreement with the United States, which was worked on for seven years.
The idea of this document is to give European companies much greater access to the highly regulated Chinese market and to facilitate Chinese investment in Europe. Standards for avoiding state aid and sustainable development are also set. It would be possible that European companies would not be forced to set up joint ventures with Chinese companies to operate freely on the territory of the Asian giant.
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Yesterday, in an interview with EU Trade Commissioner Valdis Dombrovskis, he briefly gave the impression that ratification work by all member states had stalled due to gaps in diplomatic relations. A commission spokesman then changed the word to “freeze” or “delay”.
There were scathing comments from China on the country’s “European policy” issues, as the commission was quick to clarify that the ratification process has not been suspended, but related technical activities are under way.
Today, however, Dombrovskis assured that “the ratification process cannot be separated from the dynamics” of EU-China relations, and the bloc’s final approval is linked to those ties. Earlier, a European Commission statement said that “the prospects for a Comprehensive Investment Agreement depend on how the situation develops.”
“In this context, Chinese regulatory sanctions … are unacceptable and the next steps for ratification of the agreement will depend on how the situation develops,” Dombrovskis said.
What will the EP say (but also Germany)
The agreement will also have to be approved by the European Parliament. There the task is difficult, with groups of Social Democrats and Greens rejecting it; while MEPs are sanctioned by China, the reaction of other groups also cannot be certain. Criticism of something has been heard over human rights problems and before Beijing’s counter-sanctions.
Ratification is also uncertain in some national capitals. It will not be possible in Berlin until after the September elections.
But then Angela Merkel, who supports him, will not be chancellor, her Christian Democrats may not be in power, and the possibility of the Greens being part of the next government or even just becoming one of the leading political forces (certainly before the Social Democrats) sets the procedure. into question.
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