Recently, European Union Commission Vice President Valdis Dombrovskis said that efforts to win approval for the EU-China Comprehensive Agreement on Investment (CAI) were effectively on ice. Last December, negotiations on CAI were finally completed as scheduled after seven years. But in March, the EU, together with the U.S., imposed sanctions against China allegedly for human rights violations in its Xinjiang Uygur Autonomous Region. Politicizing an economic pact will be costly to the EU as CAI is mutually beneficial.