EU-China trade relations and human rights

Abstract

This dissertation investigates how differing stances on human rights by the European Union (EU) and the People’s Republic of China influence their trade negotiations and agreements. As two of the largest economies on the international stage, the EU and China have forged deep economic ties, with China becoming the EU’s largest source of imports and a key trading partner overall. However, despite mutual declarations of interest in strengthening economic relations, attempts to deepen cooperation, most notably through the Comprehensive Agreement on Investment (CAI), have repeatedly stalled. Officially suspended in 2023, the CAI’s fate reflects broader tensions in Sino-EU relations that go beyond trade imbalances and venture into the realm of political values. The evolution of EU-China relations since the 1970s reflects a pattern of alternating cooperation and tension. Historical milestones include the signing of the 1985 Trade and Cooperation Agreement and the launch of a strategic partnership in 2003. However, events such as the Tiananmen Square crackdown and more recent issues, including the EU’s growing trade imbalance with China and Beijing’s ambiguous stance on the Russo-Ukrainian war, have strained relations. At the heart of these tensions lies a persistent clash in political and moral values. The EU adopts a normative agenda centred on democracy, human rights and the rule of law, while China maintains a position of non-interference and sovereignty over domestic issues, especially regarding regions like Xinjiang, Tibet, and Taiwan. This dissertation seeks to explore how these value-based divergences manifest in trade diplomacy and influence trade negotiations. The central question for this study is: “In what ways do China’s and the EU's positions on human rights influence trade negotiations and agreements?” This question is especially pertinent in light of stalled agreements and increasing rhetoric framing China as not just an economic partner, but also a ‘systematic rival’. To answer this question, the dissertation employs a literature-based methodology, grounded in a rapid review approach. This method allows for an efficient yet rigorous synthesis of academic research and official documents relevant to Sino-EU trade relations and human rights discourse. The first chapter outlines the rationale for this methodology, followed by thematic analysis of the literature in subsequent chapters. The dissertation concludes with a criticism of the findings, offering insights into ways normative values act as both obstacles and instruments in international trade diplomacy. This research contributes to a deeper understanding of why seemingly pragmatic trade agreements become entangled in political disputes, and what this means for the future of EU-China relations.