The European Union (EU) has proposed imposing new trade restrictions on 20 companies, including three based in China, for their alleged support of Russia’s war efforts in Ukraine.
If approved, this move would mark the first time the EU has targeted companies on the Chinese mainland since the Russian invasion of Ukraine began.
According to a draft proposal reviewed by Bloomberg, the list also includes companies from Hong Kong, Serbia, India, and Turkey, some of which are facing sanctions for the first time. Legal reasons have prevented the disclosure of the companies’ names.
These restrictions would prohibit European companies from dealing with those listed, as part of the EU’s efforts to cut off Russia’s access to sanctioned goods through third countries.
Earlier proposals by the EU to include many Chinese companies under these restrictions were rejected after objections from some member states and assurances from Beijing.
This issue holds significant importance for the EU, which considers Beijing one of its key trade partners. This is especially true for Germany, where China represents the largest market for its automotive industry, including major players like Volkswagen.
The companies, mainly operating in the technology and electronics sectors, are accused of contributing to Russia’s military capabilities or the development of its defense and security sectors, as stated in the draft proposal.
European Commission President Ursula von der Leyen warned Chinese President Xi Jinping against involvement in the conflict during her visit to Beijing in April, emphasizing the expectation that China would not provide military equipment to Russia, either directly or indirectly.
The proposals target three Chinese companies and one company each from India, Sri Lanka, Serbia, Kazakhstan, Thailand, Turkey, and Hong Kong.
Being on the proposed list does not imply jurisdictional responsibility for the companies’ actions. To date, the EU has listed over 620 companies, almost all Russian, under these restrictions.
