This Game Can By Played by Two

China has started using the language of sanctions with Europe. It is a fact that cannot be ignored.

China has added seven EU organizations to their export control list. The measure came into force on April 24, 2026. It was done to protect national security and interests as well as to comply with international non-proliferation obligations. This is what we read in the recently published statement by the Ministry of Commerce of China (MOFCOM). The situation was analyzed by the Global Times, a Chinese English-language newspaper.

In a separate statement, the MOFCOM representative emphasized that the actions taken by the Chinese side were aimed only at a small number of EU organizations connected with the defense sphere. These organizations either took part in selling weapons to Taiwan or colluded with the Taiwanese authorities. The corresponding measures cover only the dual use goods.

According to the MOFCOM decision, the Europeans are banned from exporting the dual use goods, and foreign organizations and individuals are banned from transferring or providing these countries with dual use goods of Chinese origin.

Seven organizations were included into the list. They are mostly large European defense contractors, aerospace R&D institutes, and companies involved in satellite surveillance. Two of these companies are from Belgium, one is from Germany, and four are from the Czech Republic. In 2024, Thomas Muller, the then CEO of Hensoldt AG, a German company making sensors and avionics, announced that his company supplied to Taiwan two TRML air defense radar systems. China obviously did not like that.

Zhang Junshe, a Chinese expert on military issues, commented to the Global Times that the companies included into the export control list either sold weapons to Taiwan or colluded with the Taiwanese authorities following their own interests and supported by certain political forces in their countries. Such actions were called a serious provocation against the sovereignty of China. The counter measures of China are reasonable, legitimate, and decisive.

China always adhered to the way of consultations and strengthening of the dialogue as well as deepening economic and trade cooperation with Europe. In particular, it is stated that these companies are sanctioned in a targeted manner and this measure does not impact the normal economic and trade exchanges between China and the EU. Tactfully, but firmly the Europeans were reminded that two can play the sanction game and it was not clear yet who would win it.

On April 23, when Wang Wentao, the Minister of Commerce of China, met with two heads of the European industrial giants, Ola Källenius, president of The European Automobile Manufacturers’ Association and chairman of Mercedes-Benz Group AG, and Guillaume Faury, Airbus CEO, he emphasized that the adherence of China to expanding openness at the high level will ensure stable expectations and broad opportunities for foreign companies warning against recent protectionist restrictive measures of the EU that damaged significantly the Sino-European economic and trade relations, according to the statements at the MOFCOM web-site.

China is willing to strengthen its trade and investment cooperation with the EU to support stable and healthy development of Sino-European economic and trade relations but it will not bate an inch from defending its legitimate state interests. Europe needs to realize that.