EU Proposes Sanctions on Chinese Firms for Allegedly Helping Russia

Facts

• Diplomatic sources have confirmed the EU on Wednesday will begin discussing sanctions against eight Chinese companies for allegedly aiding the Russian war effort in Ukraine. It would be the first time the 27-member bloc sanctioned China in relation to the conflict.¹
• On Monday, a spokesman for the European Commission stated that the draft proposal, which was sent to member states on Friday, focuses on implementing sanctions, their effectiveness, and how to crack down circumvention.²
• Though he provided no further details about the EU's 11th sanctions package against Russia since the outbreak of the war, the Financial Times reported that two mainland China-based and six Hong Kong-based companies were being targeted.³
• Some of these businesses have already been placed under US sanctions, namely the mainland Chinese companies 3HC Semiconductors and King-Pai Technology, and the Hong Kong-based Sinno Electronics and Sigma Technology.⁴
• The move may also expand the bloc's list of goods barred from road transit through Russia. According to the sources, it would also blacklist individuals allegedly involved in deporting Ukrainian children and moving cultural goods to Russia from the war zone.³
• Though Europe, particularly Paris and Berlin, have for decades opposed US extraterritorial sanctions, the EU is now showing a willingness to follow the US in sanctioning non-EU companies that supply Russia with goods that it prevents its own companies from exporting.⁵

Sources: ¹South China Morning Post, ²Euronews, ³Reuters, ⁴FT, and ⁵Wall Street Journal.

Narratives

• Anti-China narrative, as provided by Euractiv. Though China claims to be a neutral actor seeking peace between Russia and Ukraine, Beijing and Moscow signed a "no limits" partnership just before the invasion. The West had only promised sanctions should China provide material aid to the Russian military, which is what it seems these companies have done. This proposal didn't come out of the blue but in response to Beijing's growing vocal and now material support for Moscow.
• Pro-China narrative, as provided by Global Times. China has never taken a side in the Russia-Ukraine war, and it's best the EU and its member countries understand that. China has looked at this conflict through an objective lens and offered peaceful solutions through negotiation. Therefore, any sanctions placed on Chinese firms by the EU would be an unprovoked move to which China has the right to defend itself equally.

Predictions