China sanctions EU firms, including two from Poland, in response to EU measures

China has responded to European Union sanctions by imposing its own restrictions on 14 EU companies, including two Polish businesses. This move is a direct countermeasure to the EU's recent decision to sanction 14 Chinese firms accused of supporting Russia's military actions in Ukraine.

The Chinese Ministry of Commerce stated that the sanctioned EU companies are now prohibited from importing dual-use goods – products that can be utilized for both civilian and military purposes. Furthermore, all ongoing transactions with these blacklisted firms must be immediately halted.

Among the targeted companies are notable entities such as German defense contractor Rheinmetall, Italian electric motor producer Lafert, French drone manufacturer Cavok UAS, and Czech firm TATRA TRUCKS. From Poland, the sanctions affect Wroclaw University of Science and Technology and Vigo Photonics, a technology company specializing in infrared detectors that has supplied components for space missions.

These Chinese counter-sanctions are a reaction to the EU's 21st package of measures against Russia and its allies. This latest EU package, approved on July 23, targets the financial, energy, and trade sectors, along with cryptocurrency transactions. It encompasses 48 individuals, 170 organizations, and 94 Russian banks and financial institutions, including 14 companies from China and 11 from India, Kazakhstan, Turkey, and the UAE. The EU also introduced a new mechanism to completely ban cryptographic service providers from third countries aiding Russia in circumventing sanctions.