EditorialWise heads must find way to save deal on China-EU investment

Name: Beijing hits back at Western sanctions against China’s alleged treatment of Uygur Muslims
Uploaded: 2021-05-26T17:55:53.000Z
Duration: 3 min 36 s
Description: Beijing hits back at Western sanctions against China’s alleged treatment of Uygur Muslims

Political fallout has derailed a treaty that could ultimately make a real difference, not only to the two economies but also global growth

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A China-EU investment treaty, announced in December, has been derailed by politics. Photo: AFP

SCMP Editorial

Published: 1:55am, 27 May 2021Updated: 1:55am, 27 May 2021

China made an investment treaty with the European Union a priority for a post-Covid world.

It took seven years and dozens of rounds of negotiations before the two sides struck an agreement in principle last December. It was announced to great fanfare by Chinese and European leaders as one that could ultimately make a real difference, not only to the two economies but also global growth.

It has been derailed by politics, with the European Parliament voting to freeze further discussions, putting it in limbo until Beijing lifts sanctions on EU officials, academics and researchers. These are in retaliation for EU action against four Chinese officials and one organisation over alleged human rights abuses in Xinjiang.

The obstacles may seem procedural. But the European vote was overwhelming; and, in his first public reaction, Foreign Minister Wang Yi this week said the parliament was wrong to link human rights with trade issues and allegations of genocide were “lies”.

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Beijing hits back at Western sanctions against China’s alleged treatment of Uygur Muslims

So it is difficult to see the Comprehensive Agreement on Investment (CAI) going anywhere soon. That is regrettable.

It is a missed opportunity for historic progress in Sino-European relations, with political gestures and grandstanding prevailing over substance. This is far from the pragmatic approach in the negotiations driven by Chancellor Angela Merkel of Germany.

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} Political fallout has derailed a treaty that could ultimately make a real difference, not only to the two economies but also global growth

Political fallout has derailed a treaty that could ultimately make a real difference, not only to the two economies but also global growth