The EU has put aside attempts for a massive investment deal with China after a series of sanctions. The European Commission has announced that any further efforts to ratify an agreement with China will depend on improving relations between Brussels and Beijing. German Chancellor Angela Merkel defended the investment deal in December, but is now expected to face opposition in the European Parliament from MEPs.
He described China as a “massive market” especially for what he called the “big players” in Europe like France and Germany.
Mr Coonan said: “So a lot of the pressure is going to be political and it’s going to come from people like Angela Merkel, the Chancellor here in Germany.
“This project has been a pet for her and she will certainly do her best to make sure this deal goes through. “
European companies are expected to benefit from better access under the proposed deal, just as Chinese investments in the EU market will also be streamlined.
However, first of all, the agreement must be ratified by the EU member states with the European Parliament.
The measures taken by Beijing to sanction MEPs who have spoken out on China’s treatment of the Uyghur people have increased opposition to the (CAI).
Last year, the Chancellor called for the removal of trade barriers between Europe and China.
Ms Merkel said: “For the investment agreement with China, we naturally expect reciprocity.
“If the Chinese side does not grant any market access in certain areas, it will naturally mean that access to the European market will also be more restricted. “