Retaliation between the EU and China could jeopardize a new investment deal

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

The EU on Monday imposed sanctions on four Chinese officials and one entity for human rights violations in China’s northwestern Xinjiang region. The move was part of a concerted action against Beijing by the US and its allies, including the UK and Canada.

China quickly retaliated against the EU, announcing its own blacklist of 10 individuals – including European legislators – and four entities.

Beijing’s response, in turn, sparked warnings from several MEPs or MEPs, who said they would not ratify the EU-China investment deal agreed in December.

“Lifting sanctions against MEPs is a prerequisite for us to enter into talks with the Chinese government about the investment deal,” said Kathleen van Brempt, an MEP of the left-wing Socialists and Democrats.

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

Those targeted by the Chinese sanctions also weighed.

Reinhard Bütikofer, a German MEP, said in a Twitter message that ratification of the EU-China agreement “is not likely” after Beijing imposed sanctions to “punish” freedom of expression.

Bütikofer is a legislator of the Greens / European Free Alliance and chair of the Chinese delegation of the European Parliament.

Meanwhile, Slovak MEP Miriam Lexmann of the center-right group of the European People’s Party 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 who supports fundamental values ​​and principles. undermines “.

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

But even before Monday’s retaliatory measures, some European lawmakers have voiced three major concerns about the deal, leaving them doubts about passing it.

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

The Mandarin language released Tuesday said EU sanctions against China were based on “lies and disinformation” about Xinjiang, according to a CNBC translation. It also warned the EU not to further deteriorate 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 Uyghur Muslims and other minorities in detention camps.

In a joint statement released Monday, the US Secretary of State and the Foreign Ministers of Canada and the United Kingdom claimed that “China’s extensive repression program includes severe restrictions on religious freedoms, the use of forced labor, mass detention in internment camps. , “forced sterilizations and the joint destruction of the Uyghur heritage. “

China has repeatedly denied allegations of forced labor, claiming that the camps are re-education camps to eradicate extremism and teach people new job skills.

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