China’s Commerce Ministry announced on Friday a ban on the export of dual-use items to seven European entities.
The decision, which places the firms on an immediate export control list, follows allegations of arms sales to Taiwan.
This move represents a rare instance of Beijing targeting European organisations with Taiwan-related sanctions.
While the United States remains the primary weapons supplier to Taiwan, European nations have generally avoided large-scale military sales to Taipei for three decades to avoid diplomatic friction with Beijing.
Entities cited for Taiwan cooperation
The sanctioned list includes the German defence electronics firm Hensoldt AG and the Belgium-based manufacturer FN Browning.
A spokesperson for the commerce ministry stated that these entities participated in arms sales or had otherwise colluded with Taiwan.
Hensoldt informed Reuters that it is currently verifying the facts and will assess the situation. There has been no immediate response from FN Browning, the European Union, or the government in Taipei.
Four of the seven entities on the list are based in the Czech Republic, including Excalibur Army, a unit of the Czechoslovak Group.
The Czech firm noted that it does not source dual-use technologies directly from China and does not expect a material impact on its operations.
Diplomatic and regulatory response
Czech Foreign Minister Petr Macinka expressed a need for clarity from Chinese authorities and confirmed that instructions have been sent to the Czech embassy in Beijing regarding the matter.
Dual-use items refer to goods, software, or technologies with both civilian and military applications. These include critical materials such as rare earth elements, which are essential for the production of drones and microchips.
Under the new regulations, foreign organisations and individuals are prohibited from providing dual-use items of Chinese origin to the listed entities. The ministry further directed that any related activities must cease immediately.
Trade impact and dialogue
The ministry indicated it reserves the right to approve shipments on a case-by-case basis in exceptional circumstances if an exporter deems a transaction necessary.
China reportedly informed the European Union of the measures through a bilateral export control dialogue mechanism prior to the public announcement.
The commerce ministry spokesperson clarified that these measures apply strictly to dual-use items and are not intended to disrupt normal economic or trade exchanges between China and Europe.
The statement added that law-abiding European entities have no cause for concern.
The move comes at a time when certain Central and Eastern European nations have shown increased engagement with Taiwan.
Beijing has frequently sanctioned American arms manufacturers for sales to the island, but this extension to European firms marks a notable shift in policy.
