​MNI INTERVIEW: EU Can Save China Deal, But Time Wrong: MEP

The EU-China investment agreement should be saved but it has to be off the table for now following China's decision to impose sanctions on EU diplomats and politicians, MEP Iulio Winkel and the European Parliament's rapporteur on the deal as it undergoes scrutiny by the assembly told MNI.

"It should be saved, but my observation is that for the moment the CAI is off the table."

Winkel says that saving the deal will come down to dialogue and willingness on both sides to de-escalate, he says, with "broad consideration" now needed for "all elements of the crisis."

"There are at least seventy formats or bodies of institutional cooperation between EU and China and between EU member states and China – joint committees, delegations etc. So, in that sense, dialogue never stops," Winkel noted

According to Winkel, the deal is worth saving, particularly given the unprecedented provisions it contains on trade and sustainable development, labour standards and climate policy, but he agrees that the EP can't make a choice when it comes to a clash between EU values and commercial interests.

Winkel notes that political interests linked to China's 2022 Party Congress may be a key driver of the anti-EU hardline, which has been adopted by China's leadership.

REALPOLITIK

The huge EU-China trading relationship will certainly provide incentives to get some resolution on the issue of sanctions.

"Is it true that we trade two billion dollars a day with China? Yes, it is true. And this will not go away. Sure, two billion dollars a day is not more important than EU values – no, of course. But is it rational to want to normalise relations – yes of course."

"This is realpolitik and it's the way to go."

Earlier Friday, MNI spoke to advisors to the Beijing government who also saw the deal being ratified at some point.