Pro Trump Chinese regret having supported him

Investment agreement with China: EU braking maneuver is regrettable

“The suspension of the ratification process for the investment agreement is not an unexpected step given the escalating diplomatic tensions between the EU and China, but it is unfortunate.

The Federal Minister of Economics rightly described the agreement as a milestone. True, it has a limited range. Still, it would open up freedoms for European companies in China that Chinese investors have long enjoyed in the EU and that China has denied for many years. Even the United States, under Donald Trump, signed an agreement with China with similar elements that has been in force for more than a year and to which the current US administration is sticking unchanged. It establishes a clear preference for US investors over European investors, for example in the area of ​​financial services.

It is to be hoped that China and the EU will find a face-saving exit from the spiral of sanctions. According to research results from the IfW Kiel, it is very unlikely that what is now the largest economy in the world will change its behavior on the basis of sanctions. The economic costs on both sides and the risk of further alienation, however, are very real. However, the damage is still very limited; the ratification of the agreement by the EU parliament was not planned before the end of the current year anyway.

After many years of talks, the negotiations on a comprehensive investment agreement with China were concluded shortly before the end of 2020 under the German Council Presidency. Failure would also mean failure of German economic diplomacy.

First, the EU imposed sanctions on four Chinese politicians for human rights violations by China in the Uyghur province of Xian-Jiang, the first since the massacre in Tiananmen Square more than 30 years ago. For its part, China has reacted by banning ten EU politicians and scientists from entering the country. The suspension of the ratification is a further step in the spiral of sanctions. "