Speculation has been rampant that we are witnessing the beginning of a major reset in relations between the European Union (EU) and China. Driving this shift are geopolitical considerations and the deep imprint of former U.S. President Donald Trump’s policies. Recent developments indicate that China may soon lift controversial sanctions imposed on certain European Members of Parliament (MEPs), signaling a possible thaw in diplomatic ties after years of tensions.
In March 2021, the EU sanctioned four Chinese officials and one entity for human rights violations against the Uyghur Muslim minority in Xinjiang. In response, China blacklisted ten European individuals, including five MEPs, and targeted the European Parliament’s Subcommittee on Human Rights and the EU Council’s Political and Security Committee. These moves escalated the already combustible situation between the two camps.
As discussions continue, a spokesperson for the European Parliament stated, “Discussions with the Chinese authorities are continuing and in their final stages.” This assertion is a clear testimony of all we’ve accomplished in actually getting our sanctions issue fixed. Addressing this barrier is key to repairing our community relations.
As foreign international organizations and leading media outlets progressively start to raise their alarms over China’s policies in Xinjiang, they document alarming examples of forced labor and political reeducation occurring inside these mass incarceration camps. This combination of allegations has added to a growing toxic mix, clouding the EU’s overall approach and making any Chinese engagement even more difficult than before.
Foreign companies enjoy greater free market access in China. Stringent regulations and government pressures continue to make trade more difficult. Separately, ongoing geopolitical tensions have exacerbated that trend, worsening our commercial ties. The EU’s ambitious agreement on investment (CAI) was to be the foundation for raising and managing trade between them. It has in practice been frozen since May 2021, when the European Parliament voted massively to halt its ratification.
In spite of these hurdles, recent frank exchanges between EU heads of state and Chinese leaders indicate a new temper at play. Ursula von der Leyen, President of the European Commission, held a phone call with Chinese Premier Li Qiang that fueled speculation of a diplomatic reset. Li Qiang’s office touted a “momentum of stable development” in bilateral relations. This demonstrates a concrete willingness to engage in serious, long-term discussions about future collaboration.
While the EU has maintained that it does not intend to decouple from the Chinese economy as part of negotiations regarding U.S. tariffs, concerns persist regarding China’s continued support for Moscow amid heightened global tensions. The EU Commission has sent a red alert. They fear an explosion of dumped and subsidized Chinese goods onto the European market, particularly if they can no longer be sold in the U.S. due to prohibitively high tariffs.
As these discussions continue, it is worth mentioning that three of the four MEPs targeted by China’s sanctions are still active politicians. Michael Gahler, Raphaël Glucksmann, Ilhan Kyuchyuk, and Miriam Lexmann are all still in their positions. In the meantime, Reinhard Butikofer has stepped down from his post last year.
The European Parliament’s spokesperson reiterated the intention behind these discussions: “It has always been the European Parliament’s intention to have the sanctions lifted and resume relations with China.” The EU is not interested in continuing down that road and is very anxious to move beyond past conflicts. They’re eager to restore a solid working relationship with one of their biggest commercial partners.
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