Key Points
- China has sanctioned two European banks in a retaliatory move against the EU.
- The move follows the EU’s decision to sanction two Chinese financial institutions. The EU sanctions are related to alleged ties to Russia.
- Chinese individuals and companies are now banned from doing business with the two European banks.
- The escalating sanctions are harming the economic relationship between China and the EU.
China has hit back at the European Union, imposing its sanctions on two European banks. The move is a direct response to the EU’s recent decision to sanction two Chinese financial institutions over their alleged ties to Russia.
On Wednesday, China’s Ministry of Commerce announced that it was placing countermeasures on UAB Urbo Bankas and AB Mano Bankas. Under these new rules, Chinese organizations and individuals are now banned from doing any kind of business with the two banks.
The EU’s sanctions, which took effect on August 9, were imposed despite China’s strong opposition. Beijing claims the EU’s actions “seriously violate international law” and harm the rights of Chinese companies.
A ministry spokesperson also warned that the sanctions are having a “negative impact” on the economic and financial cooperation between China and the EU.
This tit-for-tat move marks a significant escalation in the economic tensions between the two powers. China is now urging the EU to “correct its wrongful actions” and stop taking measures that could harm the long-standing cooperation between them.
The core of the dispute is the EU’s attempt to crack down on any support for Russia’s war effort. This policy is now creating direct conflict with Beijing.
