Likelihood of Treaty Implementation Decreasing
Reinhard Bütikofer, chair of the European Parliament’s delegation for relations with China, criticized the EU-China investment treaty signed last year, mentioning human rights issues related to China.
Last year, the European Parliament raised the same objection and mentioned the same issues after the European Commission reached an agreement with China on the treaty. On Jan. 21 this year, the European Parliament adopted a resolution against China’s civic activist oppression in Hong Kong.
Under the circumstances, the likelihood of treaty implementation is decreasing. The treaty can become effective through ratification by the 27 member states of the European Union as well as the European Parliament. Although the European Commission is aiming to complete the ratification process next year, it may take more than two years for the treaty to come into force. The enforcement of the treaty itself may be impossible in some cases.
In addition, the Joe Biden administration is putting more and more pressure on China with its allies. The EU-China investment treaty may do more harm than good to Europe by undermining its long partnership with the United States.
Nonetheless, China is still trying to deepen its relations with Europe. On Feb. 9, Chinese President Xi Jinping promised COVID-19 vaccine cooperation and bilateral trade expansion at his online summit meeting with 17 Central and Eastern European countries. Last year, China beat the United States to become the most important trade partner for the European Union. Specifically, the EU-China and EU-U.S. trade values were US$586 billion euros and US$555 billion euros, respectively. In addition, the European Union’s exports to and imports from China increased 2.2 percent and 5.6 percent, respectively.
The European Commission is in strong favor of the investment treaty as it can mitigate the huge economic impact of COVID-19. Once the treaty is ratified, European enterprises can get unprecedented market accesses in the industries of China including telecom, financial and electric vehicle.