China adds 7 EU entities to export control list over Taiwan arms sales

BEIJING - China’s Commerce Ministry said on April 24 that it was banning exports of dual-use items to seven European entities over arms sales to Taiwan, placing them immediately on its export control list in a rare case of Europe-targeted, Taiwan-related sanctions.

Taiwan, which China views as its own territory, gets most of its weapons from the US. Europe has not sold any major weapons systems, such as fighter jets, to Taipei for about three decades, for fear of raising Beijing’s ire.

The entities, including German defence electronics company Hensoldt and Belgian-based defence and sporting arms manufacturer FN Browning, have participated in arms sales to Taiwan or “colluded with Taiwan”, a Commerce Ministry spokesperson said in a statement.

There was no immediate comment from Taiwan’s government, the European Union, or FN Browning.

“We are currently verifying the facts and will assess the situation in due course,” Hensoldt told Reuters.

Czech company Excalibur Army, which is also on the list, said it does not directly source any dual-use technologies from China and does not expect to see a material impact on its business.

Dual-use items are goods, software, or technologies that have both civilian and military applications, including certain rare earth elements that are essential for making drones and chips.

The Chinese Commerce Ministry also said foreign organisations and individuals are prohibited from transferring or providing dual-use items originating from China to the seven entities, and that any related activities must be stopped immediately.

The ministry signalled that China reserves the right to approve shipments on a case-by-case basis in exceptional circumstances, saying exporters of dual-use items could apply when an export is deemed “indeed necessary” for the entities.

China informed the EU about the situation through the bilateral export control dialogue mechanism before the announcement, according to the ministry.

“The measures apply only to dual-use items and do not affect normal economic and trade exchanges between China and Europe,” the spokesperson said. “Law-abiding EU entities with integrity have absolutely no need to worry.”

While many countries, especially in Europe, are nervous about defence cooperation with Taiwan over fears of Chinese retaliation, Taipei has found an increasingly sympathetic ear in parts of Central and Eastern Europe, especially since Russia invaded Ukraine in 2022.

China has repeatedly sanctioned major US arms makers for making sales to Taiwan, most recently in December following Washington’s announcement of a US$11 billion (S$14 billion) weapons sale package to the island.

Taiwan’s democratically elected government rejects Beijing’s sovereignty claims, saying only the island’s people can decide their future. REUTERS