China bans dual-use exports to 14 EU firms in response to Russia sanctions

BEIJING: China has banned the export of dual-use items to 14 additional European Union entities with immediate effect, the Commerce Ministry said on Friday, in response to the EU's latest round of sanctions against Russia.

The move came a day after the European Union adopted its 21st package of sanctions against Russia over the war in Ukraine, under which 14 Chinese mainland and Hong Kong enterprises were placed under sanction, according to the Commerce Ministry.

Among the European entities barred from receiving dual-use items are German automotive and arms manufacturer Rheinmetall AG and Polish electronics company Vigo Photonics S.A., the ministry said in a statement.

The ministry added that foreign organisations and individuals are also prohibited from transferring or supplying China-origin dual-use items to these entities, though Chinese exporters may apply for exemptions in exceptional cases.

Dual-use items refer to goods, software or technologies with both civilian and military applications, including certain rare earth elements essential for manufacturing drones and semiconductors.

Responding to the announcement, European Commission spokesperson Paula Pinho said the bloc was reviewing China's newly announced measures and would coordinate with member states and the companies affected. "We will seek clarification with our counterparts in China in order to better understand what is at stake," she said.

China's export control list has most often targeted U.S. and Japanese entities. In April, it added seven European entities to the list over their countries' arms sales to Taiwan, marking a rare instance of Europe-focused sanctions tied to the Taiwan issue.

The EU, in its Thursday statement, said it had added 51 new entities, including some based in China, to its list of parties facing tighter export restrictions on dual-use goods and technologies over their alleged support for Russia's military and industrial sector.