China blasts EU sanctions on Chinese firms over Russia links

China lashed out after the European Union added Chinese entities to its latest sanctions package on Russia, a move that sharpened a fight over how far Brussels will go to squeeze Moscow’s war economy and how credible Beijing’s neutrality claim really is.

China’s Ministry of Commerce said it had “firm opposition” to the EU decision and demanded the targeted entities be removed immediately. Beijing warned the measure could seriously undermine mutual trust and the stability of China-EU relations, and said it would take necessary steps to protect Chinese companies, with the consequences falling on the EU side.

The sanctions package, adopted by the European Union on April 23, was its 20th round against Russia and was designed to increase pressure on Moscow to negotiate on terms acceptable for Ukraine. It marked the bloc’s first activation of its anti-circumvention tool, a sign that Brussels is moving beyond punishing Russian firms alone and is now going after third-country suppliers it believes are keeping Russia’s war machine supplied.

Reuters reported that the list includes China-based entities accused of providing dual-use goods, and in some cases weapons systems, to Russia’s military-industrial complex. The package also targeted energy, shipping, finance, crypto services and sensitive battlefield technology, while adding measures linked to Belarus’s support for Russia’s aggression. That combination matters because it shows the EU is trying to hit both the revenues and the procurement channels that keep the war going.

For Brussels, the logic is straightforward: if Russian industry can keep sourcing critical components through intermediaries, sanctions lose force. For Beijing, the move is another example of Western governments extending the conflict’s economic fallout beyond Russia’s borders and penalizing Chinese firms that it says should not be treated as belligerents. The clash also came with a fast-moving trade retaliation. On April 24, China placed seven companies in the European Union on an export-control list, adding a fresh layer of pressure to an already strained economic relationship.

The bigger test is political as much as economic. By sanctioning China-linked suppliers, the European Union signaled it is willing to absorb friction with one of its most important trading partners in order to close loopholes in Russia sanctions enforcement. China’s response showed the limits of its neutrality posture when its companies are accused of supporting Russia’s military-industrial base. That tension is likely to deepen as Europe keeps tightening controls on the flow of critical technology into Russia.