China

Beijing Blacklists 14 EU Firms Over 21st Sanctions Package

China has added 14 European Union companies to its export control list in retaliation for the EU's 21st sanctions package against Russia, which targeted Chinese firms. The move restricts the supply of dual-use goods to entities including Rheinmetall, TATRA TRUCKS, and several others across eight EU member states.

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Beijing has added 14 European Union companies to its export control list, a retaliatory measure against Brussels' 21st sanctions package targeting Russia, which also included Chinese entities. The decision was announced by the Chinese Ministry of Commerce on Thursday.

The EU's latest sanctions package, adopted earlier this month, added 14 companies from mainland China and Hong Kong to its sanctions list, accusing them of supporting Russia's economy and military industry or helping Moscow circumvent European sanctions. Beijing's response was swift and directly proportional.

"In order to safeguard our country's national security and interests, as well as to fulfill international obligations, including those regarding non-proliferation, in response to the aforementioned malicious actions by the European side, and in accordance with the provisions of legislative acts such as the Export Control Law of the People's Republic of China, and the Regulations of the People's Republic of China on Export Control of Dual-Use Items, we have decided to include 14 entities from the EU in the export control list," the ministry stated.

The blacklisted companies span eight EU member states. Italy's Lafert S.p.A. and Garnet S.r.l. are affected, along with German firms Sindlhauser Materials GmbH, Rheinmetall AG, and Antraco Chemie-Handelsgesellschaft. France's InPACT S.A., III-V LAB, and Cavok UAS are also targeted, as are Poland's Vigo Photonics S.A. and Politechnika Wroclawska. Other affected entities include IHC Merwede Holding B.V. (Netherlands), TATRA TRUCKS a.s. (Czech Republic), Opticoelectron Group (Bulgaria), and Ekspla UAB (Lithuania).

The countermeasures prohibit Chinese export operators from supplying dual-use goods to the listed entities. Additionally, foreign entities and individuals are barred from transferring relevant Chinese-made products to these companies. The decision took effect immediately upon its announcement on Thursday.

The move escalates the ongoing trade friction between China and the EU, which has intensified over the bloc's sanctions regime against Moscow. Beijing has consistently opposed what it views as unilateral sanctions and has warned that it would take necessary measures to protect its interests. The inclusion of major defense contractors like Rheinmetall and TATRA TRUCKS signals a significant hardening of China's stance.

As the EU considers future sanctions packages, this retaliatory action is likely to complicate diplomatic and economic relations between the two major trading partners. The restrictions on dual-use goods could disrupt supply chains for European defense and technology companies, further straining an already tense bilateral relationship.