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EU-China investment deal put on ice over sanctions

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Massive trade agreement stalls due to a diplomatic dispute sparked by China's Xinjiang policy. FMTNews EU China

The two sides signed the deal in 2020, but recent sanctions have jeopardised the deal.

“We now in a sense have suspended … political outreach activities from the EC side,” EU Executive Vice-President Valdis Dombrovskis told AFP in an interview. Trying to ratify the deal “will depend really on how broader EU-China relations will evolve”, he added. The pact has been defended as a much needed opening to China’s long-closed economy for European companies but was sure to face difficult ratification amongst the 27 member states as well as the European Parliament.

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