Beijing has placed seven entities from the European Union on its export control list, banning them from receiving “dual-use” items – products with potential military application – originating in China, according to a statement from the Ministry of Commerce issued on Friday.
The entities, including Belgium-based firearms manufacturer FN Herstal and its parent FN Browning Group, are predominantly major European defence contractors, aerospace research institutes and satellite intelligence firms the ministry said were involved in arms sales to Taiwan.
The move came after the
bloc imposed sanctions or export controls on 27 mainland Chinese and Hong Kong entities on Thursday, accusing them of either helping Russia and Belarus circumvent Western sanctions or directly providing items such as drones or components for use on the battlefield in Ukraine.
The ministry said the measure was to “safeguard China’s national security and interests” and “fulfil international obligations such as non-proliferation”, and was in accordance with the country’s laws and regulations on export control.
“It must be emphasised that China’s legal listing of these entities targets only a small number of EU military-related entities that have taken part in arms sales to Taiwan or engaged in collusion with Taiwan,” the ministry said in a statement.
“These measures apply strictly to dual-use items and do not affect normal economic and trade exchanges between China and the EU. Law-abiding EU entities with high integrity have absolutely no cause for concern.”
Alicia Garcia-Herrero, chief economist for Asia-Pacific at French investment bank Natixis, said Beijing’s move could be a tit-for-tat retaliation for the EU measures revealed the day before.
“Notably, it also follows China’s supply chain law approved on April 7,” she said. “The rules impose significant penalties on foreign entities that attempt to interfere with, audit, or otherwise disrupt Chinese supply chain arrangements.”
The new 18-point regulation on supply chain security elevates safeguarding China’s industrial and supply chains to a national security issue. It also grants officials the power to punish any entities deemed to threaten the country’s access to vital resources and the free flow of goods.