EU’s “Dangerous Game” with China Sparks Beijing’s Fury over Sanctions on Firms Aiding Russia

Tuesday, July 22, 2025  Read time3 min

SAEDNEWS: In an unprecedented move, the European Union has blacklisted several Chinese companies for supplying dual-use technology to Russia, prompting Beijing to brand the sanctions “illegal, irrational and provocative” and warn of costly reprisals.

EU’s “Dangerous Game” with China Sparks Beijing’s Fury over Sanctions on Firms Aiding Russia

According to Saed News, in an unprecedented action, the European Union has placed several Chinese companies on its sanctions list for allegedly collaborating with Russia—an effort aimed at undermining Moscow’s logistical and military capabilities. Beijing responded with fierce condemnation, calling the move “illegal, irrational and provocative” and warning that it could come at a high price for Europe.

Saed News, citing Russia Today, reports that the new EU sanctions package targets, for the first time, Chinese firms accused of exporting dual‑use (military‑civilian) components to Russia. Europe asserts these companies helped Moscow evade Western sanctions.

China, however, has denounced the measures as interference in the legitimate trade of its private enterprises and cited them as evidence of Brussels’ policy instability.

What did Beijing say?

A spokesperson for China’s Ministry of Foreign Affairs reacted swiftly and in unprecedented tones, stating:

“We firmly oppose the expansion of unilateral sanctions based on opaque information and unproven allegations. Europe must understand that applying pressure on Chinese companies will elicit reciprocal responses.”

China also threatened to defend the lawful rights and interests of its firms with “strong and effective measures.”

Why do these sanctions matter?

  1. First direct EU targeting of Chinese firms over the Ukraine crisis. Unlike the United States, which has repeatedly sanctioned Chinese companies, Europe had until now refrained from such measures.

  2. Signals Brussels’ gradual policy shift toward China. The EU appears to be moving from a “economic partner/strategic competitor” stance to a tougher posture.

  3. Increases pressure on China to choose between Russia and the West. Europe seeks to raise the cost of Beijing’s implicit support for Russia.

Has Europe caught China in a Western geopolitical trap?

China has thus far tried to balance its tacit backing for Russia with avoidance of direct confrontation with the West. By extending sanctions to Chinese firms, Europe has challenged that equilibrium.

From Beijing’s perspective, the move is not only unfair but part of the West’s “double‑game,” whereby Europe and the U.S. seek simultaneously to contain China and preserve it as a consumer market.

Which companies are targeted?

According to the published list, several technology firms based in Shenzhen, Hangzhou, and Shanghai—operating in telecommunications equipment, chipsets, electronic components, and industrial systems—have been blacklisted. The EU claims these companies conducted indirect exports to Russia via third countries such as Kazakhstan or Armenia.

China insists these transactions complied with international trade laws and that Europe’s allegations lack transparent legal evidence.

What is Europe’s goal?

Europe’s primary objectives can be analyzed on three levels:

  • Disrupt Russia’s alternative technology supply chains. Prevent Moscow from compensating for Western tech sanctions via Chinese firms.

  • Pressure China to alter its stance on the Ukraine war.

  • Signal Washington of Europe’s solidarity in containing China, especially in the run‑up to U.S. elections.

Beijing’s reaction isn’t just political

Alongside its diplomatic protest, China is likely to deploy economic leverage. Europe depends heavily on imports of industrial goods, raw materials, and electronics from China. Despite political tensions, China‑Europe trade recently hit record highs.

China’s threat of “countermeasures” could include restrictions on European companies in the Chinese market or pressure on European tech supply chains.

Who are the losers?

This showdown not only heightens geopolitical tensions but could impact major international industries. Companies such as Volkswagen, BASF, Siemens, and Airbus—with substantial investments in China—fear entering a volatile trade environment.

European tech firms may also face reciprocal blacklisting by Beijing in response.

Global impact: Does the China‑West tech rivalry enter a new phase?

This episode may mark the start of a new phase in the technology war between China and the West—one in which Europe, not just the U.S., is fully engaged. Governments, corporations, universities, research labs, and even stock markets are drawn into the competition.

Conclusion: Beijing’s warning—Europe’s choice

While Europe’s sanctions on Chinese companies may appear as part of its pressure campaign against Russia, they in practice escalate structural tensions with China to a new level. Beijing has warned Europe: choose dialogue and cooperation, or brace for the economic, commercial, and geopolitical consequences of your provocative decisions.

  Labels: Europe