China Restricts EU Firms Amid Taiwan-Linked Weapons Dispute

(MENAFN) Beijing has imposed new trade restrictions on several European companies, blocking them from accessing Chinese dual-use goods over alleged connections to weapons-related activities involving Taiwan.

According to reports, China’s Ministry of Commerce announced on Friday that seven EU-based organizations have been added to its restricted list. The affected entities include German radar specialist Hensoldt, Belgian arms manufacturers FN Browning Group and its subsidiary FN Herstal, along with four Czech organizations: Omnipol, Excalibur Army, SpaceKnow, and the Czech Aeronautical Research and Testing Institute.

Dual-use goods refer to materials and technologies that can be applied in both civilian and military fields, such as components used in drones or refined rare earth elements. In recent years, China has expanded the use of export controls to limit access to such sensitive materials for countries it views as potential security risks, including Japan and the United States.

Under these regulations, foreign buyers are prohibited from re-exporting dual-use products to defense-related companies that have been placed on China’s blacklist.

Following the announcement, Czech Foreign Minister Petr Macinka called for clarification from Beijing regarding the decision. Hensoldt stated it was “verifying the facts” and reviewing the implications, while Excalibur Army said it does not directly obtain dual-use technologies from China.

These measures mark the first time EU-based entities have been specifically sanctioned by Beijing over alleged links to arms-related activity involving Taiwan. A spokesperson for the Chinese Commerce Ministry also emphasized that “law-abiding customers “with integrity have absolutely no need to worry” about supplies.”

The move came shortly after the European Union approved a new package of sanctions targeting Russia, which included restrictions on 27 entities based in mainland China or Hong Kong. Chinese authorities expressed strong opposition to the EU decision, stating they were “strongly dissatisfied with and firmly opposed” to the measures, and warned of potential “necessary measures” to safeguard national interests.

In a related development, China also lifted earlier countermeasures against Lithuanian banks. This decision followed the EU’s removal of sanctions on two Chinese financial institutions that had previously been accused of facilitating services linked to Russia.

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