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China Retaliates Against EU Sanctions With Curbs on 14 European Firms

China Retaliates Against EU Sanctions With Curbs on 14 European Firms

Laaheerie P
July 25, 2026

China on Friday announced export controls on 14 European entities, escalating tensions with the European Union after the bloc imposed sanctions on Chinese companies accused of supporting Russia amid the ongoing war in Ukraine.

Under the measures announced by China's Commerce Ministry, Chinese companies will be prohibited from exporting dual-use items to the 14 European organisations. Such products can have both civilian and military applications. In addition, foreign companies will be barred from supplying the targeted entities with dual-use items manufactured in China.

The European organisations affected include Czech vehicle manufacturer Tatra Trucks, Italian electric motor maker Lafert SpA, German manufacturer Sindlhauser Materials GmbH and French drone maker Cavok UAS.

A spokesperson for China's Commerce Ministry said the move was taken in response to the European Union's decision on Thursday to add 14 Chinese and Hong Kong enterprises to its latest sanctions package against Russia.

The spokesperson accused the EU of taking "egregious actions" and said China's countermeasures were intended to safeguard national security and interests while fulfilling international obligations, including those related to non-proliferation.

The EU's latest measures form part of its 21st package of sanctions against Russia, targeting sectors including banks, cryptocurrency firms and manufacturers linked to military equipment. The sanctions also cover entities from countries including China, India and Türkiye, which the EU believes have supplied Russia with dual-use goods and technology.

China's latest action marks a fresh escalation in economic and trade tensions between Beijing and Brussels, particularly over the use of export controls and sanctions linked to the Russia-Ukraine conflict. The measures could further complicate trade relations between China and the EU as both sides increasingly scrutinise cross-border supplies of strategic and dual-use technologies.