China Warns of ‘Strong’ Reaction If EU Sanctions Its Companies

Arne Delfs
·3 min read
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(Bloomberg) -- China would react “strictly and strongly” to any penalties imposed on its companies by the European Union for supplying Russia with so-called dual-use goods that can be used for both military and civilian purposes, according to Foreign Minister Qin Gang.

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The EU’s executive arm has proposed extending strict trade restrictions to several Chinese companies as it tries to crack down on firms supplying the Kremlin with banned goods and technologies that have aided its war machine in Ukraine.

Asked about the prospect of sanctions after talks in Berlin Tuesday with his German counterpart, Annalena Baerbock, Qin said China does not “deliver any weapons to crisis nations or crisis regions.” He warned against disrupting what he called the “normal exchange between Chinese and Russian companies.”

“We strictly oppose any one-sided sanctions against China,” Qin said at a joint news conference. “If that were the case we would react strictly and strongly to them,” he added. “We will also defend the legitimate and legal interests of our country and our companies.”

Export Restrictions

The European Commission says companies targeted — including businesses in mainland China and Hong Kong, as well as companies in Uzbekistan, Armenia and the United Arab Emirates — are “directly supporting Russia’s military and industrial complex in its war of aggression,” according to documents seen by Bloomberg.

It calls for “stricter export restrictions regarding dual-use goods and technology, as well as goods and technology which might contribute to the technological enhancement of Russia’s defense and security sector.”

Speaking alongside Qin, Baerbock said it’s important that EU sanctions on Russia are not being circumvented.

“This is especially critical if Russian defense companies are getting hold of relevant goods,” Baerbock said. “We are therefore investigating very targeted measures which ensure that sanctioned goods, also sanctioned dual-use goods, are not getting into the wrong hands.”

Government Meeting

Qin traveled to Berlin to help prepare for German-Chinese government consultations scheduled for June 20 which will also be attended by Premier Li Qiang.

Qin said that the finance ministry in Beijing is working to rearrange Wednesday’s planned meeting between German Finance Minister Christian Lindner and his Chinese counterpart, which was postponed at short notice on Monday.

A Greens party ally of Lindner’s called the postponement an “affront” but Qin said that Lindner is “of course” welcome in China.

Baerbock and Qin met in Beijing in mid-April and they had a testy public exchange over China’s human rights record and Taiwan policy.

Baerbock told Qin at a joint news conference that a change in Taiwan’s status would be “unacceptable.” He replied: “What China doesn’t need is a master teacher from the West.”

After a lunch with Qin on Tuesday, Baerbock will fly to Paris for talks with French President Emmanuel Macron.

During her China visit in April, Baerbock had to deal with the diplomatic fallout from a Macron interview, in which he said that Europe should not be drawn into the US conflict with China over Taiwan, but rather develop its own position.

Qin will meet a high-ranking official in the chancellery in Berlin on Wednesday before continuing his European trip with stops in France and Norway.

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