The EU did not issue a statement criticizing the Chinese Communist Party over the national security law in Hong Kong because it was sabotaging it.

Two European Union diplomatic sources said the EU was prepared to issue a statement criticizing the Chinese Communist Party’s national security law in Hong Kong, but Hungary blocked it, a move that could undermine the EU’s efforts to counter Beijing’s efforts to curb Hong Kong’s freedoms.

The EU was scheduled to issue the statement at a meeting of EU foreign ministers on 19 May to show support for the UK and US actions to defend human rights in Hong Kong, but it failed to get unanimous agreement from all 27 member states.

A senior EU diplomatic source told Reuters, “The Hungarian argument is that the EU already has too many problems with the Chinese Communist Party.” Another senior diplomatic source also confirmed the blocking of the statement and Hungary’s position.

An EU official said the statement had been withdrawn from the process pending EU approval.

The Communist Party and the EU imposed sanctions on each other in late March over Western allegations of human rights abuses in Xinjiang.

The Hungarian diplomatic staff in Brussels could not be reached for confirmation of this. Hungary reluctantly supported the EU’s sanctions last month, but criticized them as “meaningless” and received the Chinese defense minister for an official visit just days later.

Hungary is heavily invested by the Chinese Communist Party, and both Hungary and Greece have blocked EU statements on the Chinese Communist Party in the past. China Ocean Shipping Group owns more than half of Greece’s largest port.

One of the EU diplomatic sources said that this is another blow to the EU’s action in defense of human rights. He also questioned the “soft power” of the economically powerful EU. The EU has been encouraging other countries to follow its lead in abolishing the death penalty and upholding freedom of expression.

Reuters reports that the challenge for the EU is to strike a balance between maintaining business relations with China and being able to speak out against the Communist government’s crackdown on Hong Kong, human rights lawyers and Uighur Muslims.