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EU Proposes Sanctions on Chinese Companies Supporting Russia... Strong Backlash from China

The European Union (EU) Commission is pushing for sanctions against Chinese companies that assist Russia in its war against Ukraine. This marks the first time the EU has changed its stance, having previously seen no evidence that China supplied weapons to Russia since Russia invaded Ukraine in February last year.


According to major foreign media on the 8th (local time), Eric Mamer, spokesperson for the EU Commission, stated at a regular briefing that "on the 5th, we proposed the draft of the 11th sanctions package to EU member states."


EU Proposes Sanctions on Chinese Companies Supporting Russia... Strong Backlash from China

In response to a question about whether the new measures include sanctions on third-country companies, Mamer said, "This package will focus on the implementation of existing sanctions and violations of sanctions," adding, "We will look into exports to Russia, and we do not want sanctioned items to flow into Russia from other countries." This is interpreted as the inclusion of third-party sanctions in the draft of the 11th sanctions package.


According to major foreign media, the Commission's draft reportedly includes a ban on the export of key technologies to at least seven companies based in China.


Two companies located in mainland China, 3HC Semiconductor and King Pi Technology, along with five companies based in Hong Kong?Xinnuo Electronics, Sigma Technology, Asia Pacific Link, Todan Industry, and Alpha Trading Investment?are mentioned as targets of the sanctions. Some of these companies are already under U.S. sanctions.


The EU believes that 3HC Semiconductor in China is helping procure U.S.-made components to support the Russian military's defense industry. King Pi has provided ultra-small electronic technology to develop defense programs for the guidance systems of Russian cruise missiles. Hong Kong-based Xinnuo and U.S.-headquartered Taco are understood to have supplied the Russian military company Radioavtomatika.


In addition, companies from third countries such as Kazakhstan, Armenia, the United Arab Emirates (UAE), and T?rkiye, which are suspected of sanction evasion, are also reportedly under discussion as sanction targets.


The draft also includes provisions to ban the sale of certain products to third countries where diplomatic pressure is ineffective. If such measures are approved, member states will need to individually approve actions against companies or countries each time.


The EU Commission plans to discuss the details of the sanctions draft around the 10th. To add these companies to the sanctions list, the EU must obtain unanimous approval from all 27 member states.


The Chinese government has indicated the possibility of retaliatory measures if the EU approves such sanctions.


Wang Wenbin, spokesperson for the Chinese Ministry of Foreign Affairs, said at a regular briefing on the 8th, "We firmly oppose illegal sanctions or expanded jurisdiction against China under the pretext of China-Russia cooperation," adding, "If the reports are true, Europe's behavior severely undermines mutual trust and cooperation between China and Europe and will deepen global division and confrontation, which is very dangerous."


Wang further urged, "We call on the European side not to take the wrong path," emphasizing, "If they do not heed this, China will firmly safeguard its legitimate and reasonable rights and interests."


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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