Chinese businesses among hundreds newly sanctioned by US for aiding Russia in its war on Ukraine
- Seventeen companies in mainland China or Hong Kong are named among more than 500 Russia-related sanctions ahead of war’s second anniversary
- The White House says the sanctions also aim to hold Moscow accountable for the death of opposition leader Alexei Navalny
Seventeen companies from mainland China and Hong Kong were among the hundreds of targets of fresh sanctions imposed on Friday by the United States, which accused them of shipping equipment to Russia or otherwise providing support in its war with Ukraine.
On the eve of the second anniversary of Russia’s invasion and retaliating for the death of opposition leader Alexei Navalny last week, the White House announced more than 500 Russia-related sanctions, the largest number imposed since the conflict began. The sanctions primarily targeted Russia’s Mir payment system, financial institutions and its military industrial base.
The Treasury Department and State Department “have designated now more than 4,000 entities and individuals pursuant to [Russia]-related sanctions authorities over the last two years, the strongest set of sanctions ever imposed on a major economy”, John Kirby, White House national security spokesman, said.
Among them, Treasury named six Chinese makers and exporters for shipping microelectronics – some of them of foreign origin – to Russia, thus helping Moscow evade earlier sanctions. The department blocked the companies’ assets in the US and barred US businesses from dealing with them.
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Three of the Chinese entities – Guangzhou Ausay Technology Co Limited, Shenzhen Biguang Trading Co Limited, Yilufa Electronics Limited – were also named on the European Union’s sanction list announced on Wednesday, accused of helping Russian buyers gain access to European-made goods with dual military and civilian uses, which the EU had banned from export to Russia.
Jiangxi Liansheng Technology, a photoelectric producer in central China, was also alleged to have shipped optical laboratory accessories and other tech equipment to Russia.
The other two Chinese companies are Guangzhou Hesen Import and Export and New Idea Guangzhou Technology.
They were among the almost 300 individuals and entities – mostly Russian, though some from Europe and the Middle East – targeted by the Treasury on Friday.
The State Department also imposed sanctions on more than 250 entities and individuals, including three Chinese companies, for supplying Russian entities with ties to the country’s military: Zhejiang Oulong Electric, Wuhan Maiwe Communication and Corebai Microelectronics Beijing.
Three Russian officials in connection with Navalny’s death were also on the State Department’s blacklist.
The US Department of Commerce placed trade restrictions on 93 entities, including one from mainland China, Shenzhen Speed Industrial Materials, and seven from Hong Kong: Bion Group Ic Ve Dis Ticaret Limited Sirketi; Dennex Enterprises Limited; Exeya Co Limited; Kaili Industrial HK Limited; Most Development Limited; Sigma Technology Limited; and United Electronics Group Company Limited.
“We must sustain our support for Ukraine even as we weaken Russia’s war machine,” Treasury Secretary Janet Yellen said. “It’s critical that Congress steps up to join our allies around the world in giving Ukraine the means to defend itself and its freedom.”
Liu Pengyu, spokesperson for the Chinese embassy in Washington, said the US sanctions on Chinese companies is “a typical move of economic coercion, unilateralism and bullying”.”
“The US needs to correct its wrongdoing immediately, and stop containing and suppressing Chinese companies. China will continue to do what is necessary to firmly safeguard the lawful rights and interests of Chinese companies,” Liu said.
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Russia’s economy remains surprisingly resilient despite the sanctions imposed by the West since the invasion began. Last month, the International Monetary Fund more than doubled its forecast for the country’s economic growth in 2024, raising it to 2.6 per cent from 1.1 per cent in October.
Weeks before the invasion, Chinese President Xi Jinping and his Russian counterpart Vladimir Putin declared a “no limits” partnership and they have maintained their close relationship.
The countries’ bilateral trade has grown at a pace of 25 to 30 per cent annually, as sanctions-hit Moscow increased its reliance on imports of Chinese goods as well as Beijing’s purchase of its oil and gas.
Insisting it remains neutral in the war, China has not condemned Russia’s actions, though it has called for a ceasefire and negotiations to end the conflict. Western countries have been pressuring Beijing to do more to help end the conflict.
Angela Stent, professor emerita of government and foreign service at Georgetown University, said on Friday during a Brookings Institution event that China’s leadership are at least “passive supporters of Russia” and would not want Moscow to be defeated.
“We know that they’re helping evade some of the sanctions that they’re supplying Russia with components that are being used, both in weapons and other industrial fora.
“The Chinese have really done very little to mediate,” Stent said.
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Michael O’Hanlon, foreign policy research director at Brookings, argued at the same event that China is helping Russia less than US is helping Ukraine.
“It’s very important that China has not shipped weapons to Moscow. That’s a very important strategic fact. Also, there are elements of the Chinese ‘peace plan’ that we can live with and should try to work with,” he said.
Additional reporting by Bochen Han
