US Issues Warning to Chinese Companies Cooperating with Russia... China Strongly Protests

US Mentions Possible Secondary Sanctions on Companies and Individuals
Chinese Foreign Ministry: "US Should Not Infringe on China's Rights"

[Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] The United States issued a strong warning to China by mentioning the possibility of secondary sanctions against Chinese semiconductor and IT companies and individuals who continue to trade with Russia. The Chinese government also reacted strongly, escalating tensions between the two countries.

US Government Warns of Possible Secondary Sanctions

According to the New York Times (NYT) on the 8th (local time), US Commerce Secretary Gina Raimondo mentioned the possibility of secondary sanctions, stating that Chinese companies ignoring US export restrictions against Russia could be "shut down." This applies to all companies that continue to supply semiconductor chips, software (SW), and semiconductor equipment to Russia.

Secretary Raimondo added, "If we find that companies like SMIC located in Shanghai are selling semiconductor chips to Russia, we can essentially shut down SMIC by blocking their use of our equipment and software."

Jake Sullivan, US National Security Advisor, also warned in a Fox News interview on the 6th of last month, before Russia's invasion, that "If Russia actually invades Ukraine, Russia will have to pay a strategic price, and if China supports this, China will also pay a price."

China: "US Should Not Harm China's Rights and Interests"

In response to the US's secondary sanctions trend, the Chinese government strongly opposed it, stating, "We will take all necessary measures to protect the legitimate rights and interests of Chinese companies and individuals." China has maintained cooperation such as trade with Russia despite US-led sanctions against Russia. Recently, it is also known to be considering equity investments in Russian energy raw material companies.

Zhao Lijian, spokesperson for the Chinese Ministry of Foreign Affairs, responded to related questions at a regular briefing on the 9th, saying, "The US must handle China's concerns seriously and earnestly while dealing with the Ukraine issue and its relationship with Russia, and must not harm China's rights and interests in any way."

Spokesperson Zhao also emphasized, "Sanctions are fundamentally not an effective method," and "China firmly opposes unilateral sanctions and long arm jurisdiction (extending a country's legal jurisdiction beyond its borders)."

Regarding China's position on the Ukraine crisis, Zhao said, "There is no change," and added, "We hope that the relevant parties will strengthen efforts to promote reconciliation and dialogue, ease tensions, and resolve the Ukraine issue peacefully as soon as possible."

He further criticized US media reports on the close relationship between China and Russia, saying, "The US is spreading false information targeting China one after another, trying to shift conflicts and take advantage of the situation. Their methods are despicable and their intentions sinister."