EU Preparing Sanctions on Chinese Firms Accused of Aiding Russian Army: Reports

BEIJING, CHINA - APRIL 06: A member of the Peoples Armed Police stands guard in frpnt of t
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Kurt Zindulka

The European Union is preparing new rounds of sanctions against Russia that will reportedly include firms from Communist China accused of assisting Moscow’s war in Ukraine.

According to media reports, the European Union has proposed sanctions against companies outside of Russia that have been accused of selling materials or equipment that are funnelled into Moscow’s war effort.

The sanctions, which are said to be discussed among EU member states this week, would focus heavily on firms from Communist China, which is one of the chief allies of Vladimir Putin on the world stage, despite Beijing’s professed neutrality in the war in Ukraine.

A list of companies set to be sanctioned by Brussels, seen by the Financial Times, reportedly includes at least two companies from mainland China,  3HC Semiconductors and King-Pai Technology, as well as five firms based in Hong Kong: Alpha Trading Investments, Asia Pacific Links, Sigma Technology, Sinno Electronics, and Tordan Industry.

A report from Euronews claimed that Brussels is also intent on shutting down the flow of EU-made goods being sent to Central Asia and the Caucasus, where they are then sent onwards to Russia.

In particular, the EU will reportedly focus on high-tech items made in Europe that could assist Russia’s military effort in Ukraine, including drones, radar and radio systems, and semiconductors.

Confirming that the EU is preparing another round of sanctions — yet without naming China specifically — a Commission spokesman said on Monday: “This package focuses on the implementation of sanctions, their effectiveness and how to prevent them from being circumvented, and also on the goods that have been banned from exporting to Russia –  preventing these goods from finding their way to Russia and its military-industrial complex.”

Should the bloc adopt the sanctions against Communist China it would likely fracture relations between the bloc and its top trading partner.

It is unclear at present which way the EU will go, with opinions on China clearly divided. While some within the bloc, including European Commission President Ursula von der Leyen and German Foreign Minsiter Annalena Baerbock appear to be in favour of a harder line on Beijing. On the other hand, the likes of EU Council President Charles Michel and French President Emmanuel Macron seem to be in favour of closer ties with the communist nation. 

New sanctions on China and the likely breakdown in relations with the communist top brass would likely be seen as a rebuke of President Macron, who after the retirement of Angela Merkel as Chancellor of Germany, has attempted to cast himself as the top dog in Europe.

The French president raised eyebrows from Berlin to Washington last month in the wake of his state visit with Chinese dictator Xi Jinping, after which Macron suggested that the European Union should avoid “following” the United States into a potential war with China in the event of an invasion of the independent and democratic nation of Taiwan. Mr Macron went on to question Europe’s continued reliance on America in general, including the use of the dollar as a reserve currency.

Yet, for the ‘Jupitarean’ leader, it is in doubt whether he still has enough political clout to sway the bloc, given his tenuous position domestically, with months of protests, riots, and strikes continuing to dog his second term in office.

Follow Kurt Zindulka on Twitter here @KurtZindulka

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