The trade war is entering a new phase. China introduces an export ban on seven entities from Europe

The Chinese Ministry of Commerce announced on Friday that seven EU entities were placed on the export control list. The decision banning the sale of dual-use goods to them is a reaction to arms supplies to Taiwan, although experts see it as retaliation for Thursday's Brussels sanctions.

“China's actions are lawful and only target a small number of military-related entities that were involved in arms sales to Taiwan or in collusion with it,” the ministry said, assuring that honest companies have no reason to worry. “The decision was made to protect China's national security and interests and to fulfill international obligations such as non-proliferation,” he added.

The restrictions included, among others: the Belgian arms manufacturer FN Herstal and its parent company FN Browning Group, the German company Hensoldt AG, as well as four companies from the Czech Republic.

Under the decision, which comes into force upon announcement, authorities in Beijing have banned Chinese exporters from selling dual-use items to sanctioned companies. In addition, foreign organizations and individuals are prohibited from transferring or supplying such entities with goods originating from China.

As the Hong Kong daily South China Morning Post notes, Beijing's move is a retaliation for the European Union's decision. A day earlier, as part of the 20th sanctions package against Russia, Brussels imposed restrictions on 27 Chinese companies, accusing them of helping Russia and Belarus circumvent Western sanctions or directly supplying products such as drones or components intended for use on the battlefield in Ukraine.

Xu Tianchen, an expert from the Economist Intelligence Unit, quoted by the newspaper, said that “hostility between the two powers shows no signs of abating.”

The PRC recognizes democratically governed Taiwan as its rebellious province and does not rule out the use of force for “unification.” The authorities in Taipei reject China's claims, arguing that only the island's inhabitants can decide about the country's future. This makes the sale of weapons and military equipment one of the most problematic points in China's relations with the West.

From Beijing Krzysztof Pawliszak (PAP)

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