European Parliament stops talks with China on investment agreement

The text was approved by 599 votes in favour, 30 against with 58 abstentions.

The resolution emphasises that any consideration by the European Parliament of the EU-China CAI, agreed in principle between the EU and China in December 2020, as well as any discussion on its mandatory ratification by MEPs, have “justifiably been frozen” because of the Chinese sanctions.

MEPs have demanded that China lift the sanctions before they consider the agreement, “without prejudice to the final outcome of the CAI ratification process”.  They also reminded the European Commission that MEPs will take the human rights situation in China, including in Hong Kong, into account when deciding whether to endorse the agreement or not, according to a statement on the website of the European Parliament.

However, EU's other trade and investment agreements with regional partners, including Taiwan, would not be held hostage by the suspension of the CAI ratification.

Making a call for re-balancing EU-China relations, MEPs said they support a toolbox of autonomous measures such as legislation against distortive effects of foreign subsidies on the internal market, an import ban on forced labour goods as well as an enhanced and strengthened EU Foreign Investment Screening Regulation. The EU also needs to adequately address China’s cybersecurity threats and hybrid attacks, they added.

Fibre2Fashion News Desk (RKS)