Brussels plays tough: EU proposes sanctions on Chinese firms linked to Russia’s military complex

The European Union is preparing to impose sanctions on seven Chinese companies accused of providing equipment that could be used in weapons to Russia’s military and industrial complex, Reuters reported on Sunday. 

This is a significant escalation in tensions between the EU and China, with Beijing likely to view this as Brussels siding with Washington in their battle for global influence. The EU had previously avoided targeting China, stating that there was no evidence of its direct involvement in arming Moscow. 

The EU’s move to impose sanctions on Chinese companies for supporting Russia’s war machine comes at a time when Biden administration seeks to build a united global front against China with allies.

While the US has been accusing Beijing of unfair trade practices and human rights abuses, China, for its part, has been seeking to expand its influence in Europe. 

The sanctions list includes two Chinese companies already sanctioned by the US, namely 3HC Semiconductors and King-Pai Technology, and two Hong Kong-based companies. 

Reuters reported that the sanctions target enterprises researching, manufacturing, and supplying electronic components to Russia’s military and industrial complex. In addition, the proposal entails provisions that authorise the EU to limit the sales of specific products to third countries if diplomatic efforts fail to alter their conduct. 

The proposed sanctions, however, require unanimous approval from the 27 EU member states before implementation.

This action is expected to cause displeasure in Beijing, which is eager to prevent Brussels from taking sides with Washington in its quest for worldwide dominance. Nevertheless, the EU’s decision signals that it will not tolerate companies that support Russia’s military capability. 

Since Russia’s military invasion of Ukraine, the EU has implemented 10 rounds of sanctions against Russian companies and individuals. These sanctions have significantly impacted the Russian economy and made it more challenging for them to finance the ongoing conflict in Ukraine.

Apart from the suggested sanctions on Chinese companies, the EU is also taking steps to combat the circumvention of sanctions in general. As per the draft proposal, the EU could prevent oil tankers from concealing their location without a valid reason at EU ports. According to a Financial Times report, there have been instances where vessels have bypassed the embargo on Russian seaborne oil imports by misrepresenting their cargo’s origin.