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China to Lift Sanctions on MEPs as EU Seeks Trade Stability Ahead of Trump’s Return

Beijing Offers to Lift Sanctions on MEPs as EU Eyes Reset Amid Trump’s Trade Threats

Amid escalating global trade tensions and shifting geopolitical alliances, a dramatic thaw in EU-China relations appears to be on the horizon. Beijing is reportedly in the final stages of lifting sanctions on a group of Members of the European Parliament (MEPs) — a conciliatory move that could mark the beginning of a broader diplomatic reset between the two powers. The development comes as the European Union braces for the disruptive trade policies of Donald Trump, who is widely expected to impose harsh tariffs on allies and adversaries alike if re-elected.

A spokesperson for the European Parliament confirmed this week that discussions with Chinese authorities regarding the 2021 sanctions are in their “final stages,” with Parliament President Roberta Metsola leading the negotiations. “It has always been the European Parliament's intention to have the sanctions lifted and resume relations with China,” the spokesperson said, adding that Metsola will inform political leaders once the Chinese government officially confirms the move.

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The Chinese Mission to the EU has yet to issue a formal comment.

The 2021 Sanctions Standoff

The diplomatic freeze dates back to March 2021, when the EU sanctioned four Chinese officials and one entity over alleged human rights abuses against the Uyghur Muslim minority in Xinjiang. In retaliation, Beijing blacklisted ten European individuals — including five sitting MEPs — and four entities, most notably the European Parliament’s Subcommittee on Human Rights and the EU Council’s Political and Security Committee.

Among the sanctioned lawmakers were Michael Gahler (Germany/EPP), Raphaël Glucksmann (France/S&D), Ilhan Kyuchyuk (Bulgaria/Renew Europe), and Miriam Lexmann (Slovakia/EPP), all of whom remain in office. Reinhard Bütikofer (Germany/Greens) has since left Parliament.

The backlash in Brussels was swift and severe. Within months, the European Parliament overwhelmingly voted to freeze ratification of the Comprehensive Agreement on Investment (CAI), a flagship EU-China trade pact concluded in principle at the end of 2020. The sanctions, particularly those targeting democratically elected representatives, made ratification politically untenable.

CAI: A Deal on Ice

Once touted as a breakthrough in EU-China relations, the CAI promised to improve market access for European firms and ensure a level playing field in China. It was also expected to tackle contentious issues like forced technology transfers, state subsidies, and labour rights. However, the backlash over Xinjiang and the lack of enforceable labour standards led critics to denounce the agreement as toothless.

Following the imposition of Chinese sanctions, Brussels shelved the deal indefinitely, ignoring Beijing’s repeated appeals to revive it. In the years since, European businesses have faced mounting obstacles in China, from opaque regulations to political pressures and a sharp decline in foreign direct investment.

When asked whether the easing of diplomatic tensions could justify revisiting the CAI, the European Commission offered a cautious response: “We’ll cross that bridge when we’re that far,” a spokesperson said on Thursday.

Trump’s Tariffs and the Urgency of Diversification

The EU’s tentative reconciliation with China is happening against the backdrop of renewed pressure from Washington. With Donald Trump mounting a political comeback, Brussels fears a fresh wave of tariffs that could hit European exports hard. In his previous term, Trump’s tariff-heavy strategy disrupted global supply chains and alienated many allies.

To pre-empt another round of economic shocks, the EU has been busy forging closer trade ties with other partners, including Canada, Norway, Iceland, New Zealand, and the UAE. These efforts aim to cushion the blow of any potential U.S. trade aggression and signal that the bloc is not putting all its eggs in one basket.

Nevertheless, China remains a critical trade partner. EU Commission President Ursula von der Leyen’s recent phone call with Chinese Premier Li Qiang added momentum to speculation about a diplomatic reset. The Chinese read-out of the call was notably upbeat, citing “steady growth” in bilateral ties.

A Fragile Rapprochement

Despite these positive signals, Brussels has tried to temper expectations. EU officials remain wary of Beijing’s ongoing support for Russia amid the war in Ukraine and are concerned about Chinese companies flooding European markets with cheap goods redirected from the U.S., where they now face steep tariffs.

While the EU has explicitly rejected calls for full economic decoupling from China, it continues to seek a more “balanced” relationship — one that protects European industries without entirely severing ties. This delicate balancing act could be jeopardised by the optics of too-close a rapprochement, especially if the EU hopes to negotiate any reprieve from potential Trump tariffs.

What Comes Next?

If confirmed, the lifting of sanctions on MEPs could serve as a symbolic but significant first step toward rebuilding diplomatic bridges. However, whether this thaw will translate into substantive policy shifts — such as revisiting the CAI or deepening economic cooperation — remains uncertain.

What is clear is that the global landscape is changing fast. Faced with protectionism from Washington, an assertive China, and the growing unpredictability of global trade, the EU must walk a diplomatic tightrope. Beijing’s olive branch may offer short-term relief, but the bloc’s long-term strategy will require both vigilance and versatility.

Conclusion 

As Beijing moves to lift sanctions on European lawmakers, a fragile but notable shift is underway in EU-China relations. While the removal of sanctions could pave the way for renewed dialogue, deep-rooted tensions around human rights, market access, and geopolitical alliances remain unresolved. With Donald Trump's trade threats looming large, Brussels faces mounting pressure to diversify its partnerships while maintaining critical economic ties with China. Whether this diplomatic overture will lead to a full reset or simply a temporary easing of tensions remains to be seen — but one thing is clear: in an increasingly volatile global landscape, the EU must tread carefully to protect both its values and its strategic interests.

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