The Chinese Ministry of Commerce announced on July 24th that it has placed 14 European Union entities, including Rafat Group and Gannet Company, on a list of restricted parties subject to export controls.
A ministry spokesperson stated that this action was taken in response to the EU's 21st round of sanctions against Russia, which was officially released on the evening of July 23rd Beijing time. That round of sanctions listed 14 companies from the Chinese mainland and Hong Kong. To safeguard national security and interests, and to fulfill international obligations such as non-proliferation, China has decided to impose corresponding countermeasures.
Based on the Export Control Law of the People's Republic of China and the Regulations on the Export Control of Dual-Use Items, effective July 24th, the export of dual-use items to these 14 entities is prohibited. Furthermore, foreign organizations and individuals are forbidden from transferring or providing dual-use items originating from China to these entities. All ongoing activities related to these entities must cease immediately. The Ministry stated that in exceptional circumstances where an export is genuinely necessary, the exporter must apply to the Ministry for approval.
Dong Yifan, an Associate Researcher at the Academy of Regional and Global Governance at Beijing Language and Culture University, explained that the 14 EU entities included in the list are all involved in various aspects of the defense and military industrial chain. Imposing export controls on dual-use items for them is a standard international practice for fulfilling non-proliferation obligations. It also serves as a reciprocal countermeasure against the EU's sanctions on Chinese companies.
Dong further analyzed that this control measure not only prohibits domestic entities from exporting to these listed companies but also prevents third parties abroad from providing Chinese-origin dual-use items to them. This helps prevent these items from being used to develop or produce weapons of mass destruction or for military purposes that could exacerbate conflict or undermine regional security. He added that the EU's rationale for sanctioning 14 Chinese mainland and Hong Kong companies—citing "helping Russia evade export restrictions"—is unfounded, as most of them are trading firms. China's imposition of reciprocal countermeasures is a legitimate action to protect its own lawful rights and interests and a strong response to the EU's improper unilateral sanctions.
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