Beijing warns Brussels over potential imposition of sanctions

China has warned the European Union against imposing sanctions on Chinese companies Brussels suspects of supplying Russia with goods that could aid its war against Ukraine. EU member states will consider a new package of sanctions on Wednesday, which will include measures targeting seven firms based in Hong Kong and mainland China.

Chinese foreign ministry spokesman Wang Wenbin described such a move as “highly dangerous” and said China’s trade with Russia is completely above board.

“If the reports you mentioned are true, the EU’s actions will seriously undermine China-EU mutual trust and co-operation, and deepen division and confrontation in the world,” he told a regular news conference in Beijing.

“We urge the EU not to go on this wrong path, otherwise China will take firm actions to safeguard our legitimate and lawful interests.”

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[ China maintains an uneasy relationship with its wealthy business class ]

The Financial Times reported on Monday that the European Commission is proposing to freeze the EU assets of seven Chinese companies it believes to have sold electronic components for use by the Russian military. Four of the companies – 3HC Semiconductors, King-Pai Technology, Sinno Electronics and Sigma Technology – are already on a United States sanctions list.

The measures, which require the unanimous approval of all EU member-states, would make Chinese companies the target of European sanctions for the first time since the start of the war in Ukraine. The discussion comes as China’s foreign minister, Qin Gang, prepares to visit a number of European capitals next week, following visits to Beijing by a succession of EU leaders.

The war in Ukraine is expected to figure prominently when Mr Qin meets his French, German and Norwegian counterparts. Support is growing in Washington and in European capitals for China to play a role in facilitating peace talks between Moscow and Kyiv after the imminently expected Ukrainian military offensive is over.

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“China has an important role to play in this issue and, in this respect, it would not surprise me if this were to be raised again,” German foreign ministry spokesman Christofer Burger said.

In Beijing on Monday, Mr Qin told US ambassador Nicholas Burns that it was essential to restore stability to the China-US relationship following recent setbacks.

“A series of erroneous words and deeds by the United States since then have undermined the hard-won positive momentum of Sino-US relations,” he said.

“The agenda of dialogue and co-operation agreed by the two sides has been disrupted, and the relationship between the two countries has once again encountered cold ice.”

Beijing blames Washington’s actions over Taiwan, including last year’s visit to the island by former House speaker Nancy Pelosi, for knocking the relationship off course. A meeting last autumn in Bali between Joe Biden and Xi Jinping ended with both sides promising further engagement and high-level meetings.

But a planned visit to Beijing by secretary of state Anthony Blinken was cancelled after the US shot down a Chinese surveillance balloon that flew across the United States without authorisation. Mr Blinken hinted last week that the meeting could be rescheduled, saying it was important to restore regular lines of communication at all levels.