China Adds 14 EU Entities to Export Control List in Retaliation for EU Sanctions

On July 24, China’s Ministry of Commerce announced that 14 European Union (EU) companies and institutions are now on a Chinese export-control list. The measure bans the export of dual-use items—goods and technologies that can serve both civilian and military purposes—from China to the listed entities and also prohibits foreign firms from supplying Chinese-origin dual-use items to them. The action was presented as a direct response to the EU’s latest sanctions against Russia, which included restrictions on 14 Chinese and Hong Kong firms.

ReutersAssociated PressSouth China Morning Post21st sanctions package adopted: EU targets Russia's energy, financial and crypto sectors

The EU adopted its 21st package of sanctions against Russia on July 23, targeting banks, cryptocurrency platforms, and a wide range of military-related producers. The package added 51 entities from third countries—including China, India, Turkey and others—to a list that restricts the export of dual-use goods and technologies that could support Russia’s war effort in Ukraine. Among those third-country designations were 14 mainland Chinese and Hong Kong enterprises accused of supplying Russia with dual-use goods.

Associated PressReutersSouth China Morning Post21st sanctions package adopted: EU targets Russia's energy, financial and crypto sectors

The Chinese list names the following EU entities, as cited across multiple reports:

Reuters

• Tatra Trucks – Czech vehicle manufacturer

Associated Press

• Lafert SpA – Italian electric-motor maker

South China Morning Post

• Sindlhauser Materials GmbH – German materials producer

Associated Press

• Cavok UAS – French drone manufacturer

21st sanctions package adopted: EU targets Russia's energy, financial and crypto sectors

• Rheinmetall AG – German defence and automotive firm

South China Morning Post

• Vigo Photonics S.A. – Polish electronics company

Reuters

(Other entities were noted in the Chinese statement but were not named in the available sources.)

Reuters

The spokesperson emphasized that the measures are a reciprocal step following the EU’s addition of Chinese and Hong Kong firms to its sanctions list.

Associated Press

“I am grateful to the European Union and to every European leader for adopting the 21st sanctions package against Russia. It is very important that pressure on Russia over the war it started – and refuses to end – continues. This package includes strong measures to curb Russia's revenues, including Ukrainian proposals that have been taken into account,” — Volodymyr Zelensky, ukrainian president

21st sanctions package adopted: EU targets Russia's energy, financial and crypto sectors Kyiv Independent

The Chinese restrictions expand Beijing’s export-control list, which has historically targeted primarily U.S. and Japanese firms. By adding EU entities, China signals a willingness to use trade controls as a diplomatic lever in disputes over sanctions policy. The move may complicate supply chains for the listed companies, many of which operate in sectors—such as automotive, defence, drones and advanced electronics—where dual-use components are integral.

Reuters

For the EU, the retaliation underscores the challenges of coordinating sanctions that affect third-country firms. While the EU continues to broaden its sanctions against Russia’s financial, energy and crypto sectors, the Chinese response illustrates the risk of escalation that could affect European businesses reliant on Chinese technology.

21st sanctions package adopted: EU targets Russia's energy, financial and crypto sectors

The situation remains fluid, with both sides indicating a desire for dialogue. The EU’s ongoing analysis and the possibility of “clarification” suggest that further diplomatic engagement may be pursued to mitigate the impact on the affected European firms.

21st sanctions package adopted: EU targets Russia's energy, financial and crypto sectors