Fourteen Chinese companies on the EU’s blacklist, fourteen European ones now in Beijing’s crosshairs. China is hitting back against the bloc’s latest sanctions on Russia-linked entities with its own export restrictions.
China has imposed new export controls on 14 European entities in response to the European Union’s latest sanctions against Russia. With immediate effect, Beijing’s Ministry of Commerce banned the supply of dual-use goods to the companies: technologies, software and materials that can be used for both civilian and military purposes.
The Chinese blacklist includes Germany’s defence and industrial giant Rheinmetall, Polish technology company Vigo Photonics, Dutch shipbuilder IHC and Czech manufacturer of trucks and military vehicles Tatra Trucks.
Brussels seeks answers
The European Commission said it was assessing the impact of China’s move and would work with EU member states and the companies concerned to establish its full scope. “We will seek clarification with our counterparts in China in order to better understand what is at stake,” Commission spokesperson Paula Pinho said.
Brussels will also seek further explanations from Chinese authorities, she added.
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The case of Tatra also highlights one of the paradoxes of the growing use of export controls. The company said the Chinese measures would have no practical impact on its operations. “We do not use any components or technologies supplied from China that are subject to these export restrictions in the production of our vehicles,” company spokesperson Andrej Čírtek said.
Being placed on a sanctions list, therefore, does not automatically mean an immediate economic hit. In some cases, it may serve more as a political signal.
Beijing hits back at “hostile moves”
China’s move came a day after the EU approved its 21st package of sanctions against Russia over its ongoing war in Ukraine. The new measures target, among others, companies and financial entities that Brussels says are helping Russia’s military-industrial complex.
The package adds 51 new entities to the list of those facing tighter restrictions on dual-use goods. Among them are 14 companies from China and Hong Kong, which the EU says are supporting Russia’s military production.
China’s Ministry of Commerce described its response as a reaction to the EU’s “hostile moves”. It said the restrictions were necessary to safeguard China’s national security and interests.
Not the first time
Dual-use goods cover products and technologies that can serve ordinary industries but may also have military applications. They include, for example, certain electronic components, software, chipmaking technologies and selected rare earth elements needed for drone production.
Control over these technologies has become one of the key tools in today’s geopolitical rivalry. The EU is trying to restrict Russia’s access to technologies that can be used on the battlefield, while China is increasingly turning export controls into a tool of economic and political pressure.
Beijing most often targets Japanese and US companies with its sanctions. But this is not the first time it has used export restrictions against European entities. In April, China added seven European companies and institutions to its list.
At the time, Chinese authorities cited their alleged links to arms supplies to Taiwan as the reason. Beijing considers the democratically governed island part of its territory and has long opposed any military support for Taipei.
The latest measures show that disputes over Russia, military technologies and strategic supply chains are increasingly spilling over into EU-China relations.
