Earlier, the European Union and other countries launched sanctions against Chinese entity enterprises and individuals. China has responded forcefully to this kind of behavior. The EU's head of trade policy called China's retaliatory sanctions unacceptable and warned China that escalating the sanctions dispute could endanger the China-EU investment agreement.
An overview of the trend of spot gold
In Asian trading on Thursday, the dollar index fell slightly to around 92.50, while spot gold rose rapidly in the short term, and the price of gold is now approaching the $1740 / oz mark. Gold rose on Wednesday. Spot gold closed at $1734.69 an ounce, up $7.77 or 0.45%.
After China hit back strongly, the European Union said it could not accept the continuing simmering tension between China and the EU.
China's decision to escalate a sanctions dispute could endanger a market access agreement that should be the cornerstone of future relations between Brussels and Beijing, the EU's head of trade policy at (EU) has warned.
EU Trade Commissioner Dombrovskis said the fate of the just negotiated EU-China comprehensive investment agreement (CAI) has something to do with the diplomatic dispute that broke out this week.
"China's retaliatory sanctions are regrettable and unacceptable," Dongbrovskis said. "
"the prospect of approving CAI will depend on the development of the situation," he explained. The ratification process cannot be separated from the broader dynamic development of EU-China relations. "
It is reported that the European Commission completed negotiations on an investment agreement with the Chinese government at the end of last year, which lasted for seven years. Human rights groups attacked the EU's move for putting corporate interests above basic values. But with China's decision on Monday to impose sanctions on members of the European Parliament, the fate of the deal has become even more uncertain. The European Parliament must decide whether the agreement will enter into force.
"the EU has been making every effort to establish a balanced, rules-based economic relationship with China, and CAI is an important step in this direction," Dongbrovskis said.
Mr Donbrovskis added: "but our trade and economic agenda revolves around European values: pursuing our economic interests goes hand in hand with defending our values, including through sanctions if necessary." But Mr Dombrovskis said he believed neither China nor the EU wanted the situation to escalate.
On March 22, local time, the European Union imposed sanctions on four Chinese officials and a construction company for violating the human rights of Muslim Uighur communities in Xinjiang, the first of its kind against Beijing since 1989. It is reported that this marks the first time since 1989 that the EU has sanctioned China on the grounds of human rights violations.
According to the official website of the Chinese Ministry of Foreign Affairs on March 22, the European Union imposed unilateral sanctions on relevant Chinese individuals and entities on March 22 under the pretext of the so-called human rights issue in Xinjiang on the basis of lies and false information. The European side ignored the facts, subverted black and white, grossly interfered in China's internal affairs, blatantly violated international law and basic norms governing international relations, and seriously damaged China-EU relations. The Chinese side firmly opposes and strongly condemns this. The Chinese government is unswervingly determined to safeguard national sovereignty, security and development interests.
After the European Union, the United States, the United Kingdom and Canada successively announced sanctions against Chinese officials and entities, China announced on March 22 that it would take counter-measures against 10 EU officials and four organizations. It is reported that in view of China's announcement of sanctions against Europe, the European Parliament decided to cancel the review meeting of the EU-China comprehensive investment agreement. In response, Chinese Foreign Ministry spokeswoman Hua Chunying said at a regular press conference on Wednesday (March 24) that the China-EU investment agreement is not a gift from one side to the other, but mutually beneficial.
"in view of the latest developments in EU-China relations today, especially the unacceptable sanctions," Winkler, vice-chairman of the European Parliament's International Trade Committee, said on Monday. The European Parliament decided to cancel a review meeting scheduled for Monday to sign a comprehensive investment agreement between the EU and China. " Winkler added that the EU is about values and principles, both within the EU and globally.
Mr Winkler said China's decision to retaliate in the sanctions dispute amounted to a "regrettable escalation". "I hope diplomatic efforts can find a way to ease the situation," he said.
The European Parliament cancelled a meeting to discuss a comprehensive investment agreement ((CAI)) on Tuesday in response to Beijing's statement on Monday, Deutsche Welle reported on Wednesday. "there must be a solution to these sanctions before we can get back to normal," said Bernd Lange (Bernd Lange), a German social Democrat.
Hosuk Lee-Makiyama, director and observer of the European Center for International Politics and Economics, a Brussels think-tank, pointed out that people should realize that China has a lot of influence, and they have also sent a clear message calling on countries to abandon sanctions, otherwise they will not be able to enjoy the benefits of China's economy.
Looking ahead, gold traders will continue to focus on risk catalysts because of the weak Asian market calendar. Comments from the US GDP and European and US policy makers are likely to attract market participants.
