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Tensions Rise as China Targets European Companies Over Taiwan Weapons Deals

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China on Friday announced restrictions on seven European defence-related entities, citing their alleged involvement in arms sales to or “collusion” with Taiwan.

According to a statement from the commerce ministry, the measures took effect immediately and were introduced to “safeguard national security and interests” while fulfilling international obligations, including non-proliferation commitments.

The restrictions target several companies, including Belgian firearms manufacturer FN Herstal, German defence electronics company Hensoldt, and the Czech Republic’s national aerospace research and development centre, VZLU Aerospace.

Under the new rules, exports of so-called “dual-use items” to the listed entities are prohibited. The measures also ban foreign organisations and individuals from transferring such China-origin items to the affected companies.

“Any ongoing related activities must be stopped immediately,” the statement added.

However, it noted that applications could be submitted to the commerce ministry in “special circumstances” where exports are deemed truly necessary.

Beijing continues to regard self-ruled Taiwan as part of its territory and has pledged to bring it under its control one day, if necessary by force.

In a separate statement, a spokesperson for China’s commerce ministry said the measures are directed at “a small number of EU entities involved in military-related activities,” specifically those allegedly engaged in arms sales to Taiwan or cooperation with the island.

The statement added that “law-abiding and trustworthy EU entities have absolutely no reason for concern.”

Beijing has strengthened its export control regime in recent years, making it increasingly difficult to access certain Chinese technologies and products in strategic sectors abroad.

In February, the ministry also imposed export restrictions on 20 Japanese entities, escalating pressure on Tokyo amid rising political tensions following remarks on Taiwan made in November by Prime Minister Sanae Takaichi.

Earlier, China’s restrictions on rare earth exports triggered global supply concerns while also providing Beijing with significant leverage in trade negotiations with Washington.

More recently, the European Union Chamber of Commerce in China warned that Beijing’s tight export controls especially on rare earth materials are creating a “long-term business risk” for companies operating in the country.

AFP

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