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EU Commission Vice Dombrovskis: Unfavorable environment
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Francisco Seco / dpa
For the time being, the economic relations between the EU and China will not be deepened: The EU Commission is temporarily suspending its efforts to ratify the investment agreement with China.
The reason for this are the recent diplomatic rifts with Beijing, said the Vice President of the EU Commission, Valdis Dombrovskis, the AFP.
In view of mutual sanctions, the environment is "currently not favorable for ratification of the agreement."
After seven years of negotiations, the EU and China reached an agreement in principle on the investment agreement in December 2020. In March, the EU then imposed sanctions on those responsible for the suppression of the Muslim Uyghur minority in the Xinjiang region. In response, the government in Beijing immediately announced counter-sanctions against, among others, the Green MEP and China expert Reinhard Bütikofer and the CDU MEP Michael Gahler.
A commission spokeswoman said ratification of the agreement could not be separated from broader EU-China relations.
In this context, China's sanctions against MEPs and an entire parliamentary committee are unacceptable and deplorable.
However, the spokeswoman made it clear that ratification had not even started.
The agreement is currently being legally reviewed and translated.
"We cannot ignore the larger context of relations between the EU and China," said Commission Vice-President Dombrovskis.
The motives for the agreement, including ensuring fair competitive conditions, are "still very much present".
The agreement aims to guarantee companies on both sides stable framework conditions for trade and investments in the other market.
Federal Minister of Economics Peter Altmaier (CDU) described the agreement as a "commercial milestone" last December.
The German automotive industry was also very popular.
The US, on the other hand, announced at the beginning of the year that it was not interested in a similar deal with China.
The then Secretary of State Mike Pompeo criticized the agreement as "weak".
It would "not protect European workers from the Chinese Communist Party's raid."
The new US administration under Joe Biden was also critical of the fact that the EU agreed the agreement with Beijing shortly before he took office, although Washington had asked the Europeans to wait.
However, due to the situation in Hong Kong and other allegations regarding human rights in China, the project was also sharply criticized by experts.
fdi / AFP / dpa
