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May 8, 2023

China Opposes EU Sanctions on Chinese Companies Over Alleged Support to Russia's War Efforts

China Opposes EU Sanctions on Chinese Companies Over Alleged Support to Russia's War Efforts
Emery Taylor
Emery Taylor

China has expressed its strong opposition to any measures that use China-Russia relations as a pretext for damaging trade cooperation. The country's foreign ministry stated on Monday that if European Union (EU) sanctions targeting Chinese firms come into force, China will take firm action to safeguard its interests.

The European Union has proposed sanctioning eight Chinese companies over allegations of aiding Russia's war machine by providing electronic components such as chips and microelectronics that can be used in high-grade weapons. These proposed sanctions are part of the 11th package aimed at punishing Russia over its invasion of Ukraine.

"The attempt by certain Western countries to arbitrarily impose unilateral economic blockades or coerce others is unacceptable," said Zhao Lijian, spokesperson for the Ministry of Foreign Affairs. "China opposes any attempts to politicize economic and trade issues."

For these proposals to become enacted measures, they must receive unanimous support from all 27 EU member states during discussions set for later this week. So far, the EU has targeted Iranian firms and individuals for their role in supplying drones to Russia’s military for use in Ukraine; however, there is no evidence indicating direct arms supplies from China.

According to sources close to the matter, this latest move by Brussels represents a tentative step toward adopting U.S.-style extraterritorial sanctions—a policy wherein foreign companies are legally banned from engaging in U.S.-sanctioned trade with another country.

Experts believe that imposing such sanctions would signify a major shift in strategy amid growing tensions between Western countries and both Moscow and Beijing.

"This potential adoption of extraterritorial sanctions reflects an escalation in Europe's approach towards handling conflicts with strategic rivals like Russia and China," said Dr. Elizabeth Martinson, a political scientist specializing in international relations at Swinburne University.

While it remains uncertain whether these new measures against Chinese firms will receive unanimous support, it is clear that the EU's position regarding China's alleged involvement in Russia's war efforts will shape future relations between these global powers.