The European Union has firmly ruled out restarting talks on a long-stalled investment agreement with China.
A senior trade official said the focus should remain on fixing the current problems affecting trade between the two powers rather than looking backward.
This statement came from Marjut Hannonen, the EU’s top trade official in Beijing, who spoke at a forum on Wednesday. She addressed ongoing speculation about the fate of the Comprehensive Agreement on Investment, often referred to as the CAI. The deal was once seen as a major breakthrough, but it has remained frozen since 2021 after political tensions derailed its progress.
The agreement had been years in the making and was expected to strengthen business access between the EU and China. However, it came to a halt when the European Parliament refused to move forward with ratification. That decision followed a wave of sanctions from both sides after the EU criticized China’s treatment of Uyghur Muslims in Xinjiang. Beijing has always denied any wrongdoing, but the issue caused serious damage to relations.
Despite a recent improvement in diplomatic tone, including China’s decision last month to lift sanctions on five EU lawmakers and a parliamentary human rights panel, EU officials remain cautious. Some saw this move as a signal that China was interested in reopening investment negotiations. However, Hannonen made it clear that the EU is not interested in that path.
Instead, the EU is urging China to deal with what it describes as more urgent trade matters. These include longstanding concerns about unfair market access and industrial overcapacity. European companies have long complained that doing business in China has become more difficult due to increasing regulations and restrictions.
According to Hannonen, the EU’s priority is to address these growing issues that have hurt trade relations over the past two decades. She said that cooperation should center on making practical improvements to how companies operate in each other’s markets rather than trying to revive a politically sensitive deal that has lost momentum.
China has not officially responded to the EU’s latest position, but past statements from Chinese officials, including former ambassador Fu Cong, have suggested Beijing would welcome renewed dialogue. However, without support from Brussels, the deal appears unlikely to return to the agenda anytime soon.
This development adds to the uncertain future of EU-China trade ties, as both sides continue to navigate a complex relationship shaped by economic needs and political disagreements. For now, the EU seems focused on solving present challenges rather than revisiting unfinished agreements.