China and the European Union have agreed to simultaneously lift all mutual restrictions on institutional exchanges. This move aims to restore dialogue after years of political tension and comes amidst increased trade pressure from the US.
In 2021, the EU sanctioned four Chinese officials and one entity for human rights abuses in Xinjiang. China retaliated with sanctions against 10 European parliamentarians, academics, and four organizations.
The removal of sanctions is seen as a major step towards improving institutional relations and signifies a willingness for political de-escalation. While the sanctions had limited practical impact, their removal is interpreted as a move to ease tensions.
This rapprochement occurs as China attempts to mitigate the effects of an escalating trade war with the US, marked by high tariffs on both sides. China seeks to strengthen its relationship with the EU, presenting it as a key partner in maintaining a multilateral trade system.
The EU views China as a partner, competitor, and systemic rival. While acknowledging the importance of the relationship, the EU also expresses concerns about trade imbalances and the risk of market saturation by Chinese exports.
High-level meetings between EU and Chinese leaders are planned to discuss various areas including economics, trade, digitalization, and green development. The EU emphasizes the need for determined action to maintain their relationship and prevent further barriers.