China bans dual-use item exports to seven European entities over Taiwan arms sales

BEIJING: China's Commerce Ministry said on Friday 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 U.S. Europe has not sold any big-ticket items like fighter jets to Taipei for around three decades, fearful of raising the ire of Beijing.

The entities, including German defence electronics firm Hensoldt AG 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 EU or FN Browning.

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

TRANSFER OF DUAL-USE ITEMS
Czech company Excalibur Army, a unit of Amsterdam-listed Czechoslovak Group which is also on the list, said it does not directly source any dual-use technologies from China and did not expect to see a material impact on its business.

"The Chinese authorities should explain this to us clearly. I have already instructed our embassy in Beijing," Czech Foreign Minister Petr Macinka wrote on Facebook. Four out of the seven entities on the list are Czech.

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.

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

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

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

"The measures only apply 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 any defence cooperation with Taiwan due to 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 U.S. arms makers for making sales to Taiwan, most recently in December following the U.S. announcement of an $11 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.