China Imposes Export Controls on 14 EU Companies and Institutes for Dual-Use Items
China Retaliates Against EU Sanctions on Chinese and Hong Kong Companies
Ban on Export and Transfer of Chinese-Made Dual-Use Items
The Chinese government has placed 14 European Union (EU) companies and research institutes, including the German defense contractor Rheinmetall, under export controls for dual-use items. This is a retaliatory measure in response to the EU's inclusion of 14 Chinese and Hong Kong companies in its sanctions list against Russia.
According to China's Ministry of Commerce on July 24, the export of Chinese-made dual-use items to these 14 entities based in the EU is now prohibited. It is also forbidden for foreign companies or individuals to transfer or provide these items to the sanctioned entities. Any ongoing transactions must be halted immediately, and exceptions for exports are only possible with approval from the Ministry of Commerce.
The list of sanctioned entities includes Rheinmetall, France's semiconductor and optoelectronics research institute III-V Lab, Polish infrared sensor manufacturer Vigo Photonics, and Czech military special truck manufacturer Tatra Trucks, among others.
China's Ministry of Commerce explained that this measure was taken in response to the EU’s 21st package of sanctions against Russia, announced the previous day, which included 14 companies from mainland China and Hong Kong. The EU believes these companies have supported Russia’s war efforts or have been involved in circumventing existing sanctions.
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Foreign media report that while the number of sanctioned entities on both sides is the same, China’s move is distinct in that it targets major European defense and advanced technology companies. However, it is also observed that Rheinmetall's reliance on Chinese-made components is low, so the actual economic impact may be limited.
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