China vows to retaliate against EU sanctions on its companies

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China vows to retaliate against EU sanctions on its companies

China’s foreign minister has denounced EU proposals to impose sanctions on Chinese companies backing Russia’s war machine and vowed to respond “severely and firmly” to defend its businesses.

Qin Gang made the above remarks after meeting with German Foreign Minister Annalene Berberk in Berlin to prepare for the joint consultation between the German and Chinese governments to be held next month.

Eight Chinese companies accused of selling equipment that could be used in weapons have been included in a new package of sanctions that EU member states are due to discuss this week, the Financial Times has seen.

Brussels has so far avoided targeting China, saying there is no evidence it is supplying Moscow with arms. The punitive measures are currently only proposals and need to be unanimously agreed by EU member states.

Qin said China has not shipped any weapons to crisis areas and has laws regulating the export of dual-use products.

“There is normal communication and cooperation between Chinese and Russian companies . . . (this) cannot be disrupted,” he said.

“We oppose countries imposing extraterritorial or unilateral sanctions against China or any other country based on their own laws,” he said. “If this happens, we will respond strictly and firmly. We will defend the legitimate interests of our country and our companies.”

Sanhuacheng Semiconductor and Jinpai Technology, two mainland Chinese companies on the EU sanctions list, are already on the US sanctions list. Two Hong Kong-based companies on the EU list are already on the US Treasury list: Sinno Electronics and Sigma Technology.

The U.S. Treasury previously said that King-Pai supplied microelectronics to Russia “with defense applications including cruise missile guidance systems.”

Belbook declined to comment on the sanctioned companies. But she said it was “important” that sanctions imposed by the EU on Russia “are not subverted in an indirect way”.

“This is especially important when Russian arms companies acquire war-related products,” Belbock said. For this reason, she added, the EU was considering “targeted” measures to ensure that “sanctioned dual-use goods do not fall into the wrong hands”.

“It’s not about any particular country, it’s about these sanctioned goods,” she said, adding: “We want all countries, including China, to take this into consideration and exert influence over their companies.”

Referring to China’s recent peace initiative for Ukraine, Qin said Beijing would maintain contact with all relevant countries and “play a constructive role” in resolving the conflict.

Chinese President Xi Jinping emphasized in a recent phone conversation with Ukrainian President Volodymyr Zelensky that “dialogue and talks are the only way out of this crisis,” he said.

“As a permanent member of the UN Security Council and a responsible country, we will continue to push for peace talks,” he said. “China will not add fuel to the fire, nor will it try to gain self-interest from this crisis.”

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