The European Union has proposed imposing trade restrictions on more than 20 companies, including three new companies based in China, for supporting Russia’s invasion of Ukraine.
If adopted, it would be the first time the EU has imposed restrictions on mainland Chinese companies since Russia began its full-scale invasion of Ukraine. In addition to mainland China, the deal includes companies from Hong Kong, Serbia, India, Turkey and other countries, according to a draft seen by Bloomberg.
The restrictions are part of the EU’s efforts to curb Russia’s ability to obtain sanctioned items through companies in third countries, and ban companies on the list from doing business with EU companies. The EU had previously proposed restricting trade with several Chinese companies, but withdrew the proposal due to resistance from some member states and assurances from the Chinese government.
Restrictions on Chinese companies are of special importance to the EU. China is one of the EU’s most important trading partners, and Germany in particular is the biggest market for automakers such as Volkswagen.
Europe’s Record Trade Deficit With China Has Come Down
But is still much higher than pre-pandemic levels as Chinese exports soared
Source: China’s General Administration of Customs, Bloomberg calculations
The EU’s proposed sanctions must be approved by all member states before they can be adopted, and their content may change during the process.
A spokesperson for the European Commission, the EU’s executive arm, declined to comment. He sent a message to the Chinese embassy in Brussels, but there was no immediate response.
Most of the companies subject to the latest restrictions are technology and electronics-related companies, and the EU charges in the draft that they are “contributing to the technological and military strengthening and development of Russia’s defense and security industry.”
news-rsf-original-reference paywall">Original title: EU Proposes Curbs on Three Chinese Firms for Aiding Russia (excerpt)
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2024-02-12 16:55:00
