The Strategist

FT: EU considers imposing first sanctions on China for helping Russia

05/09/2023 - 05:27

According to the Financial Times, the European Commission is mulling the first penalties against Chinese firms because of their connections to Russia since the commencement of the war in Ukraine.

Marco Verch Professional Photographer
Marco Verch Professional Photographer
A draft of the new EU sanctions package obtained by the Financial Times states that the European Commission is considering applying penalties against Chinese companies for their relationships with Russia for the first time since the beginning of Russia's invasion in Ukraine.

The newspaper writes it refers to seven Chinese businesses who the EU suspects of providing Russia with military weapons. All of these companies are situated in Hong Kong. According to the FT, each company works in the semiconductor, microchip, and electronics industries. The list will be discussed midway through May.

US sanctions already apply to two of the companies, 3HC Semiconductors and King-Pai Technology from mainland China. Sigma Technology and Sinno Electronics, two additional businesses with headquarters in Hong Kong, have been put to the US Treasury's list.

Prior to now, the EU has refrained from taking restrictive measures on China because there isn't any conclusive evidence that it is supplying Russia.