According to the Chinese Ministry of Commerce, Chinese companies are no longer allowed to supply semi-military goods to fourteen European companies without permission. A license can only be requested in exceptional cases.
Defense industry
The Chinese list includes the German defense group Rheinmetall, Czech truck manufacturer Tatra Trucks, Dutch shipbuilder Royal IHC, the electric motors of the Italian Lafert Group, and the Polish technology company VIGO Photonics. The list mainly consists of companies active in defense and advanced technology.
Support for Russians
The Chinese measure followed directly after the European Union's 21st sanctions package against Russia. The EU placed dozens of Chinese officials and fourteen state-owned companies from China and Hong Kong on the sanctions list. European companies are therefore prohibited from conducting business with these entities. According to Brussels, they assist Russian buyers in obtaining Western technology.
Promotion
China described the European sanctions as harmful to the interests of Chinese companies and presented the new export restrictions as a countermeasure. The European Commission has stated it is analyzing the Chinese measures and will consult with EU countries and the affected companies about this.
Huawei
The new measures come at a time when Chinese telecom technology remains a subject of discussion between Brussels and Beijing. The European Union is working on removing Chinese telecom equipment, including that of Huawei, from European networks. According to research from the telecom industry, the costs of this could be much higher than previously assumed.
Dialogue
Despite rising tensions, both parties are trying to continue the dialogue. Shortly before the Chinese countermeasures, a delegation from the European Parliament visited Beijing. In addition, EU Trade Commissioner Maroš Šefčovič and Chinese Minister of Commerce Wang Wentao discussed trade, export controls, intellectual property rights, and reform of the World Trade Organization.