EU Plans Sanctions on Chinese Companies Aiding Russia

Key Takeaways:

• Seven Chinese businesses have been accused of selling equipment that could be used in weapons to Russia.
• The EU has powers to ban oil tankers that conceal their location without good cause from EU ports.
• China has reacted strongly to proposed sanctions, calling them “groundless” and “irresponsible.”

WISCONSIN (CoinChapter.com) — The European Union (EU) is considering imposing sanctions on seven Chinese companies for allegedly selling equipment that could be used in weapons to Russia. 

This is the first time since the conflict in Ukraine began that Brussels has proposed sanctions on Chinese companies for supporting Russia. This development will likely increase tensions with Beijing, which is already at odds with the EU over various issues, including human rights violations in Xinjiang and Hong Kong.

The sanctions list needs unanimous approval from the 27 member states. They will include asset freezes and travel bans on individuals and entities selling weapons-related technology to Russia.

Two Chinese Companies Already Sanctioned by the US

Two mainland Chinese companies on the list, 3HC Semiconductors, and King-Pai Technology, have already been under sanctions by the US. 

The US Department of Commerce added these companies to its Entity List in 2020 for their alleged involvement in human rights violations in Xinjiang. 

The Entity List is a tool the US government uses to restrict the export, re-export, and transfer of items subject to US jurisdiction to entities that pose a significant risk to national security or foreign policy interests.

EU Could Ban Shady Oil Tankers

In addition to imposing sanctions on Chinese companies, the EU also has powers to ban oil tankers that conceal their location without good cause from EU ports. 

This move aims to prevent Russia from importing oil and gas from countries such as Iran and Venezuela under US sanctions. In addition, the EU has banned oil exports to Syria and imposed sanctions on companies that violate the ban.

China’s Reaction to Proposed EU Sanctions

China has reacted strongly to proposed sanctions, calling them “groundless” and “irresponsible.” 

The Chinese Foreign Ministry has urged the EU to “stop meddling in China’s internal affairs” and warned that China “will take necessary measures to safeguard its sovereignty, security, and development interests firmly.” 

The Chinese embassy in Brussels has also issued a statement saying, “China is strongly opposed to any country’s interference in China’s internal affairs under the pretext of human rights issues.”

The EU’s move indicates that it is willing to take a tougher stance on China, despite economic consequences. However, it remains to be seen how China will react to sanctions and whether they will impact the ongoing conflict in Ukraine.