EU To “ freeze” Economic Deal With China, No Ratification
The European Parliament plans to pass a motion on Thursday to formally “freeze” the China-EU investment agreement, which was agreed to earlier. Though the deal is not being cancelled due to split in opinions in the EU, it is not going to be ratified in the foreseeable future. This would certainly damage mutual trust between the European Union and China. Though China is pinning hope that despite the motion, the investment deal may still be ratified, at a later date in the first half of 2022 when France takes over the rotating EU Council presidency.
According to Politico, the European Parliament is about to pass a motion on Thursday to freeze the EU’s investment agreement with China, after China’s countermeasures on EU lawmakers earlier this year over Xinjiang-related issues. So this is China’s own doing. On one hand it wants to trade with EU and on the other hand is not ready to halt the Human Rights abuse on the Quighers in Xinjiang.
Zhao Lijian, spokesperson of the Chinese Foreign Ministry, claimed at a media briefing that the China-EU investment agreement is a balanced and win-win agreement. It is not a gift from one side to the other and it serves the interests of both sides. He forgot that many countries cherish freedom more than mere trade.
A worried Zhao defended China’s countermeasures and termed It necessary response to the EU’s sanctions against China. Funny thing is that he even urged the EU to reflect on the Chinese Countermeasures and enhance mutual understanding through dialogue and communication, and properly manage differences.
European Parliament press officer Natalie Kontoulis stated that MEPs will vote on the resolution on Thursday, and the draft resolution says that “Parliament takes the position that any consideration of the EU-China Comprehensive Agreement on Investment, as well as any discussion on ratification by the European Parliament, have justifiably been frozen because the Chinese sanctions are in place.”
On the China-EU investment agreement, Kontoulis said a political agreement has not yet been confirmed by either the member states or parliament, and it has not been finalized in a legal form.
“Freezing means that the discussion of the deal will be suspended in the EU, which does not mean the deal will not be ratified, as the ratification process will take months due to long procedures, including translating the documents,” Wang Yiwei, director of the Institute of European Studies at the Renmin University of China, told the Global Times on Wednesday.
The possible motion was a result of the EU rethink on various Human Rights abuses carried out by Chinese authorities, China’s actions in South China Sea and Chinese attack on Indian Army across the LAC in Chinese Occupied Ladhak. EU also maintains close relationship with USA and Australia and the Chinese have declared a comprehensive trade War on both the Countries. So most of the EU members have naturally become angry after China’s countermeasures.
This move of the European Parliament’s has the potential of “freezing” not only the deal but also reduce both sides’ mutual political trust and may result in the further increase in political and economic conflicts.
It’s worrying the Chinese no end that the European Parliament’s move may force Chinese companies to lower their profit expectations from the European market or even bring most exports to a halt, which may even cause panic that will impact investment decisions.
The EU is still deciding its views on relations with China and the deal, and many people in the EU have expressed their discontent over China’s countermeasures with some believing that rejection of the deal is what is the best for Europe and other Western Countries. The EU is now likely to side with the US on trade with China.
The Chinese are trying to console themselves that EU is likely to ratify the deal in the first half of 2022 when France takes over the rotating EU Council presidency. Here the Chinese are forgetting that France is a very close friend of India. They are not at all happy with the attack by PLA on Indian Army at Galwan. Only way out by China is to vacate entire Chinese Occupied Ladakh and their after negotiate the Tibetan issue with Tibetan Government in Exile.
