EU sanctions 14 Chinese firms, Beijing hits back with export controls on European companies

The European Union added 14 Chinese companies to its latest sanctions package, accusing them of supporting Russia’s war against Ukraine. The list, which also included 14 EU defence organisations such as Germany’s Rheinmetall and a Polish university, was designed to avoid major Chinese actors to secure member‑state approval.

Within an hour of the EU announcement, China responded by imposing export controls on 14 European firms in the defence and technology sectors. Affected companies include Italy’s Lafert, France’s Cavok UAS, Germany’s Rheinmetall, the Dutch shipbuilder IHC Merwede (Royal IHC) and Germany’s Sindlhauser Materials. The Chinese measures block the supply of dual‑use goods and technologies to these entities, citing national security and non‑proliferation obligations. The rapid retaliation raises concerns about supply‑chain disruptions and a deepening trade confrontation between the bloc and Beijing.