Beijing has expressed its opposition after media reports said the European Union is going to sanction some Chinese companies that have shipped dual-use products to Russia for use in the Ukraine war.
China’s Ministry of Foreign Affairs acknowledged that it is aware of the media reports, which said the EU will announce its sanctions against dozens of companies on February 24 – the day that marks the two-year anniversary of the Russian-Ukrainian war.
“China firmly opposes illegal sanctions or ‘long-arm jurisdiction’ against China on the grounds of cooperation between China and Russia,” the Chinese Foreign Ministry said in a statement.
The Ministry did not hold its regular media briefings this week due to the Chinese New Year holidays.
Citing a 91-page document it obtained, Bloomberg reported on February 8 that the EU has proposed to sanction 55 companies and more than 60 individuals and accuse them of supporting Russia’s war efforts in Ukraine. But the report, for legal reasons, did not name the companies.
Other media reports said some of the companies that will be curbed are based in Hong Kong, Serbia, India and Turkey. They said three companies are in mainland China and four others are in Hong Kong.
If adopted, it would be the first time the EU has imposed restrictions on companies in mainland China since Russia invaded Ukraine.
The sanctions package would be the 13th since the invasion. The EU has so far sanctioned more than 600 companies, most of which are based in Russia.
On Wednesday, the EU, the United States and the United Kingdom held a meeting in Brussels to discuss how to ensure Moscow could not get around existing restrictions.
China-Russia ties
In a Beijing meeting on December 7 last year, European Council chief Charles Michel requested Xi to immediately deal with 13 companies involved in supplying Russia with dual-use goods. European Commission President Ursula von der Leyen said China should prevent any attempts by Russia to undermine the impact of sanctions.
“Is the EU trying to ban Chinese firms from cooperating with Russia? There is no need for Chinese companies to implement the EU sanctions against Russia,” a Jiangxi-based military commentator using the pen name “Snow wolf” says in an article published last December.
He said Chinese firms have the freedoms and rights to choose to cooperate with Russian counterparts while all these partnerships are done in accordance with international law.
“Stopping China from cooperating with Russia will not help resolve the Russian-Ukrainian conflicts, but will only benefit the EU and the US,” he said, adding that the EU should stop providing military assistance to Ukraine before blaming China.
On February 8, Chinese President Xi Jinping told Russian President Vladimir Putin in a phone call that both China and Russia should resolutely oppose interference in internal affairs by external forces.
He said both sides should pursue close strategic coordination and defend the sovereignty, security and development interests of their respective countries.
Investment deal
In May 2021, the EU decided to set aside the discussion of the China-EU Comprehensive Agreement on Investment (CAI) over human rights issues in China’s Xinjiang region. Beijing has tried to push forward the resumption of the negotiation since then.
Last April, French President Emmanuel Macron met Xi in Beijing while Chinese Commerce Minister Wang Wentao also met his counterparts in Paris. However, Macron told the media that it’s not the time to restart the CAI negotiation.
He also said in May 2023 that Moscow was becoming subservient to China as it had lost access to the Baltic after Sweden and Finland decided to join NATO.
Macron’s comments came after the European Commission’s von der Leyen called on Europe to reassess its diplomatic and economic relations with China.
Some commentators said the souring relations between the EU and China will make it more difficult for both sides to return to the negotiation table for the CAI deal. They said Beijing has already changed its strategy and tried to hold talks with European countries individually.
Read: Europeans demand China quit aiding Putin in Ukraine
Follow Jeff Pao on Twitter at @jeffpao3