Beijing lodges protest after US sanctions Chinese firms dealing with Russia

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After the US Treasury and State departments sanctioned nearly 120 targets, including Chinese firms to squeeze Russia for its ongoing war with Ukraine, Beijing has responded, calling it an 'illegal' move.

Reportedly, five firms based in mainland China and Hong Kong were put on the sanctions list - meaning they cannot engage in trade with any US-based firms without receiving a special licence, which is highly unobtainable, to begin with.

“It is a typical unilateral sanction and a form of ‘long-arm jurisdiction’ which seriously damages the legitimate rights and interests of enterprises and affects the security and stability of the global supply chain. China firmly opposes this,” read a statement released by the Chinese Commerce Ministry.

“The US should immediately correct its wrongdoing and stop its unreasonable suppression of Chinese companies. China will resolutely safeguard the legitimate rights and interests of Chinese companies,” it added.

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The companies sanctioned

Avtex Semiconductor Limited, Allparts Trading Co., Maxtronic International Co., ETC Electronics Ltd., and STK Electronics Co. - all based and registered in Hong Kong were put on the new sanctions list.

Washington justified its decision to sanction the companies by saying that they were suspected to be involved, or "pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States".

This is the second instance in as many months when the US has issued an embargo on Chinese companies. In February, Beijing lodged a similar protest after Changsha Tianyi Space Science and Technology Research Institute Co. Ltd. was barred by the US state department.

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US sanctions list

The list released on Wednesday primarily targetted Russian billionaire businessman Alisher Usmanov.It is believed that Usmanov is extremely close to Russian President Vladimir Putin and Dmitry Medvedev, the former Russian president.

The Treasury Department accused him of having a "wide network of businesses in financial safe havens and family members through which to conduct financial transactions, enabling him to potentially circumvent sanctions".

Apart from China, firms fromTurkey and the UAE which have been allegedly selling drones and other electronic gadgets to the Russian defence sector were also slapped with sanctions.

China's 'neutral' stance on Russia-Ukraine war

Notably, ever since the Russia-Ukraine war broke out, China has established a "no-limits" friendship with Russia where it has refused to denounce Moscow's aggressiveness, all the while presenting itself as impartial.

However, there have been hushed reports, ascertaining that China has been supplying arms to Russia. Other reports suggest that Chinese companies have been helping Russia in its surveillance programme.

Beijing has time and again denied the claims saying it does not want to get involved in the war. On Friday, after German Foreign Minister Annalena Baerbock met her Chinese counterpart Qin Gang, the latter reiterated the same line.

“Regarding the export of military items, China adopts a prudent and responsible attitude. China will not provide weapons to relevant parties of the conflict, and manage and control the exports of dual-use items in accordance with laws and regulations,” he said.

ALSO READ |Germany urges China to call out aggressor ‘Russia’ on Ukraine war, Beijing sticks to neutral line

(With inputs from agencies)

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