The European Commission has proposed sanctioning seven Chinese firms that are alleged to have sold equipment capable of supporting Russia’s military operation.
The proposal targets enterprises researching, manufacturing, and supplying electronic components to Russia’s military and industrial complex.
It also includes provisions authorising the EC to limit the sales of specific products to third countries if diplomatic efforts fail to alter their conduct.
The Chinese companies’ ability to trade in Europe is expected to be hit. Finding finance could also become more difficult.
The Brussels executive said it was, separately, taking steps to combat sanctions circumvention. The draft is designed to prevent oil tankers from concealing their location without a valid reason as part of a crackdown on false origin declarations covering Russian seaborne oil.
Proposed sanctions require unanimous approval from the 27 EU member states before implementation.
Some of the companies on the list, such as King-Pai Technology, have already been sanctioned by the United States. King-Pai Technology is a China-based supplier for Russia’s military-industrial complex.
Beijing says it is neutral in the Ukraine conflict. Its leader, Xi Jinping, has never condemned the Russian invasion.
Xi spoke to Ukrainian President Volodymir Zelenskyy on April 26 for the first time since Russia’s invasion, fulfilling a longstanding goal of Kyiv, which had publicly sought such talks for months.
The EU’s move to impose sanctions on Chinese companies comes at a time when the Biden administration is seeking to build a united global front against China.
The US has accused Beijing of unfair trade practices and human rights abuses, while China has been seeking to expand its influence in Europe. It remains to be seen whether the EU’s Member States will unanimously approve the sanctions.
