The European Parliament halted on Thursday ratification of a new investment pact with China until Beijing lifts sanctions on EU politicians, deepening a dispute in Sino-European relations and denying EU companies greater access to China.
The resolution to freeze ratification passed with 599 votes in favour, 30 votes against and 58 abstentions.
The EU-China Comprehensive Agreement on Investment, agreed by negotiators in December after seven years of talks, aimed to put EU companies on an equal footing in China and cement Beijing's status as a trusted trading partner.
But Beijing imposed sanctions in March on 10 EU politicians.
The impasse is a setback for both China and the EU. Ratification of the pact would allow greater protection of European investment and intellectual property rights in China. China was hoping for improved international standing as a fair and respectful trading partner, European diplomats say.