China Limits Exports to European Companies Over Arms Sales to Taiwan
Introduction
The Chinese Ministry of Commerce has banned seven European companies from importing dual-use goods. This decision follows claims that these companies were involved in transferring weapons to Taiwan.
Main Body
On Friday, Beijing added seven organizations to its export control list. These include Germany's Hensoldt, Belgium's FN Browning Group and FN Herstal, and four Czech entities: Omnipol, Excalibur Army, SpaceKnow, and the Czech Aeronautical Research and Testing Institute. The restrictions target 'dual-use' items, which are materials used for both civilian and military purposes, such as drone parts and rare earth elements. This is a rare move against European firms, as China has previously focused similar sanctions on U.S. defense contractors. These sanctions happened during a period of diplomatic tension between China and the European Union. The measures were introduced just one day after the EU sanctioned 27 Chinese or Hong Kong-based entities due to Russian activities. While Beijing criticized the EU's actions, it also removed previous penalties against Lithuanian banks after the EU lifted restrictions on two Chinese financial firms. Meanwhile, Taiwan has been changing its buying strategies; although the U.S. is still the main supplier, Taipei has worked more closely with Central and Eastern European countries since 2022. Different stakeholders have responded to the news. Czech Foreign Minister Petr Macinka asked Beijing for more details, while Hensoldt and Excalibur Army stated they are checking the facts or do not buy dual-use technology directly from China. Taiwan's Defence Minister, Wellington Koo, asserted that these restrictions would not stop Taipei from getting weapons through other sources. When asked about buying arms from Japan, Minister Koo explained that this would require a bilateral agreement, which does not currently exist, although he did not rule out the possibility for the future.
Conclusion
China is using export controls to punish European companies for their defense cooperation with Taiwan. However, Taiwanese officials emphasize that these measures will not harm their ability to maintain national security.