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China is set to lift sanctions on European lawmakers as part of efforts to rejuvenate an investment agreement with the European Union, following the loss of significant access to the U.S. market due to the trade war initiated by former President Donald Trump. The lifting of sanctions was initially reported by the German daily Süddeutsche Zeitung and later confirmed by a spokesperson for Roberta Metsola, the president of the European Parliament.
In 2021, Beijing imposed sanctions on several Members of the European Parliament (MEPs) as a retaliatory measure after the EU sanctioned certain Chinese entities over alleged human rights abuses against the Uyghur Muslim minority in Xinjiang. As a result, the European Parliament opted not to ratify the EU-China Comprehensive Agreement on Investment, a pact intended to enhance trade relations between the two parties.
In response to U.S. tariffs of 145 percent, which restrict its largest market except for exempted items like smartphones, Beijing is actively working to strengthen ties with the EU. A spokesperson mentioned that discussions with Chinese authorities are ongoing and nearing completion. The European Parliament’s goal has always been to have the sanctions removed to restore relations with China.
The sanctions had prohibited five MEPs, including Reinhard Bütikofer, a former German Green leader of the parliament’s China delegation, from traveling to China. While Bütikofer has left parliament, other affected MEPs, such as Michael Gahler, Miriam Lexmann, Raphaël Glucksmann, and Ilhan Kyuchyuk, continue to hold office.
Noah Barkin, a senior adviser at Rhodium Group, noted that China hopes lifting the sanctions will foster better trade relations with the EU. In his blog post, Barkin stated that European officials believe this action could potentially revive the Comprehensive Agreement on Investment (CAI) and signal strengthened EU-China cooperation amid the ongoing global trade conflict instigated by Trump. Nonetheless, he expressed skepticism about the likelihood of a meaningful rapprochement before a planned Beijing summit.
EU parliamentary officials clarified that the discussions predated Trump’s administration and were intended to facilitate the MEPs’ work. Since the sanctions were enacted, no MEPs have visited China, and interactions with Chinese diplomats have remained limited. The EU sanctions on Chinese entities remain intact.
Additionally, China imposed sanctions on two EU-linked committees, three national parliamentarians, the Mercator Institute for China Studies, the Alliance of Democracies Foundation, and two academics. Two EU officials indicated that reviving the CAI is unlikely, given the changed circumstances, and mentioned it could have exempted China from some trade enforcement actions. A senior EU diplomat indicated that the agreement is now outdated and expressed a need for more attractive offers from China on future negotiations.
Last year, the European Commission initiated a record number of trade defense investigations against Beijing and has persistently urged China to open its markets in sectors such as medical devices. As of yet, the Chinese mission in Brussels has not responded to requests for comment.
