China strikes back at EU sanctions targeting defense, tech firms

BRUSSELS — China announced it will add export restrictions on 14 EU defense and technology companies after the EU added 14 Chinese businesses to its Russia sanctions lists. This marks Beijing’s most direct and forceful response yet to EU sanctions listings, which it denounced as “egregious.” Recent studies estimate that up to 90 percent of sanctioned goods still reaching Russia transit through China. Germany’s rapidly expanding defense company Rheinmetall is among 14 firms that Chinese exporters are now barred from supplying with dual-use goods — products that have both civilian and military applications — China’s Ministry of Commerce said Friday. The list also includes Czech truckmaker Tatra, Dutch naval engineering firm IHC Merwede, and several optics and laser companies. Exporters may apply for licenses permitting certain shipments when they are deemed “truly necessary.” The announcement came a day after the EU added 14 Chinese and Hong Kong entities to its sanctions list, barring European companies from doing business with them. Most are not high-tech defense firms, but logistics companies that help Russian importers obtain Western technology.