China is poised to lift sanctions on several Members of the European Parliament (MEPs) in an effort to revive the Comprehensive Agreement on Investment (CAI) with the European Union.

These sanctions were originally imposed in 2021 as a response to EU sanctions on Chinese officials over human rights violations in Xinjiang.

President Xi Jinping is actively working to position China as a key ally for the EU, especially amid escalating tensions with the United States, where President Trump has implemented significant tariffs.

China's Foreign Minister Wang Yi is engaging with European leaders to unite against US tariffs, arguing that they undermine international trade.

Despite hopes for increased trade through the CAI, experts warn that differing views on human rights and security concerns may complicate any potential agreement.

The CAI, which aims to enhance market access for EU investors and ensure fair treatment for EU companies in China, has remained inactive since the sanctions were enacted.

EU officials express skepticism regarding the revival of the CAI, citing ongoing concerns about human rights and trade practices in China.

In the backdrop of these developments, the EU is also considering implementing minimum price quotas on Chinese electric vehicles to ease trade tensions.

The next few weeks will be critical in determining whether these diplomatic gestures lead to meaningful cooperation or reveal persistent divisions.

While China hopes that lifting sanctions will facilitate the revival of the CAI, the future of this agreement remains uncertain amid the evolving global trade landscape.

Calls from the EU Chamber of Commerce in China suggest a need for Beijing to revise its industrial policies to improve relations with Europe.

As China seeks to strengthen ties with the EU, it is also bolstering relationships with neighboring countries, promoting regional cooperation and economic partnerships.