Beijing prohibited 14 EU companies from obtaining Chinese dual-use goods on Friday, targeting Europe's defense industry shortly after the EU included 14 Chinese and Hong Kong firms in its 21st sanctions package against Russia.
Announcing the measures with immediate effect, the Chinese Commerce Ministry called the bloc's conduct "egregious" and demanded the EU "immediately correct its wrongdoing, eliminate the egregious impact, and safeguard the overall interests of China–EU relations with concrete actions."
The restrictions cover dual-use items, goods, software, and technology with both civilian and military applications, including rare earth elements used to build drones and chips.
Parties outside China are also barred from transferring Chinese-origin dual-use goods to any listed entity, though exporters may request permission in exceptional cases or when a shipment is deemed "truly necessary."
Rheinmetall leads the list, alongside Polish electronics producer Vigo Photonics, Italian electric motor manufacturer Lafert, French drone developer Cavok UAS, Czech truckmaker Tatra, Dutch naval engineering firm IHC Merwede, and several optics and laser companies.
Germany and France each have three entries, Italy and Poland each have two, and the Netherlands, the Czech Republic, Bulgaria, and Lithuania each have one.
China's mission to the EU lodged a formal protest, voicing "strong dissatisfaction and firm opposition" to the measures and rejecting attempts by the bloc to place responsibility for the war in Ukraine on Beijing. It added that China "firmly opposes the EU's unwarranted listing and sanctioning of Chinese companies and citizens."
The 21st package subjected 51 entities to tighter export curbs on dual-use goods and technologies over their support for Russia's military and industrial complex. Companies based in India, Turkey, and the UAE were listed alongside those from mainland China and Hong Kong.
Brussels targeted small trade and logistics operators in port cities like Guangzhou, Shenzhen, and Dalian, while Beijing focused on Europe's defense industry.
Cui Hongjian, a former diplomat who heads European studies at Beijing Foreign Studies University, told the South China Morning Post (SCMP) that the disparity does not make the response any less reciprocal from Beijing's perspective, noting that successive EU packages have named far more Chinese firms overall than China has named in return.
"Since this whole episode arose from the Russia-Ukraine war, I think it's understandable that China is now pointing its retaliation at Rheinmetall," Cui said. "From Beijing's point of view, if it's going to retaliate, the retaliation has to bite."