Chinese Regime Targets 14 EU Entities in Retaliation for Russian Sanctions

Shipping containers, including one from China Shipping, lie on flatbed railway cars as dock cranes stand behind at Hamburg Port in Hamburg, Germany, on April 15, 2025. Sean Gallup/Getty ImagesThe Chinese regime has imposed export controls on 14 European entities, including prominent arms producer Rheinmetall AG, in retaliation for the European Union’s new sanctions against Moscow, adding to tensions between Beijing and the EU.The Chinese Ministry of Commerce announced the decision in a statement on its website on Friday, citing the need to “safeguard national security and interests.”The measure, effective immediately, bans Chinese companies and individuals from selling dual-use items to the listed companies. All related activities should be stopped immediately, the ministry said.In addition to Germany’s Rheinmetall AG, companies named by Beijing include Italian electric motor supplier Lafert, Czech military truck producer Tatra Truck, and Polish public university Politechnika Wroclawska. Entities from the Netherlands, Bulgaria, and Lithuania were also targeted.The measures also prohibit entities outside China from transferring or supplying dual-use items that originated in China to the targeted companies.Under China’s export control regulations, dual-use items are goods, technologies, and services with both civilian and military applications.The regime has placed rare earth and some critical materials on its dual-use item list. China is the world’s leading supplier of dozens of strategic minerals and has a near monopoly on rare earths, a group of 17 metallic elements used in military equipment such as jets and submarines, as well as in a wide range of commercial products, including electric vehicles and smartphones.The European Commission, the bloc’s executive arm, didn’t immediately comment on Beijing’s announcement.The move came amid rising trade tensions between Beijing and Brussels. EU leaders have set an October deadline for the regime to make progress on the widening trade gap and other unfair trade practices. Last year, the EU recorded the largest-ever trade deficit with China, amounting to 1 billion euros ($1.1 billion) per day.In a separate statement on Friday, a Chinese ministry spokesperson said the export controls were a response to the EU’s latest round of sanctions against Moscow, saying that 14 companies from mainland China and Hong Kong were targeted. The spokesperson denounced the EU’s actions as “outrageous.”The EU countries on Thursday adopted the sweeping 21st package of sanctions against Russia over the invasion of Ukraine.They also agreed to freeze the oil price cap for 12 months. European Commission President Ursula von der Leyen said the move aims to prevent Moscow from benefiting from market shocks.“At a time when Ukraine has built military momentum, our sanctions continue to weaken the economic foundations of Russia’s war effort,” Von der Leyen said on X on Thursday.The EU has repeatedly criticized the Chinese Communist Party for its support of Russia’s war efforts, and its top diplomat, Kaja Kallas, recently accused the regime of training Russian soldiers.In its latest threat assessment, released earlier this month, the EU characterized the Chinese regime as a “crucial enabler” for Russia, and warned that Beijing would continue to increase its influence in Europe.“China’s asymmetric advantages with the EU, from trade imbalances to critical raw materials to technological advances in some areas, along with its willingness to use this as leverage against the EU and others in pursuit of its ambition of becoming the world’s leading power, make China a critical long-term strategic challenge,” the document stated.