• China condemns EU sanctions targeting twelve Chinese companies for alleged Russia ties
  • Beijing lodges formal protest and warns of protective measures as trade tensions escalate
  • Sanctions focus on technology transfer, defense sector, and Russian oil trade relationships

China has firmly condemned the European Union's latest sanctions package targeting twelve Chinese companies, calling the measures "unilateral and illegal" and demanding their immediate reversal. The sanctions, part of the EU's 19th package aimed at restricting Russia's ability to bypass Western restrictions, specifically target Chinese entities allegedly involved in technology transfer to Russia's defense sector and Russian oil trade.

"We have lodged serious protests with the EU side and urge it to immediately cease its wrong sanctions actions against Chinese companies," a spokesperson for China's Foreign Ministry said in a statement late Tuesday. The ministry warned it would take "necessary measures" to protect China's legitimate rights and interests, though specific retaliatory actions weren't detailed.

The targeted companies span technology, defense, and energy sectors, with particular focus on Chinese oil refineries and trading companies involved in Russian crude oil transactions. China remains the largest buyer of Russian crude, with imports comprising 17.5% of its total oil imports as recently as September 2025, though recent data shows a year-on-year decrease.

According to people familiar with the matter, the EU's expanded scrutiny of Chinese entities has been building since early 2023, with incremental sanctions expansion over claims that Chinese businesses are facilitating Russian access to restricted goods. The current package represents the most significant targeting of Chinese firms to date.

Efforts to resolve the dispute through diplomatic channels have apparently hit a snag, with Chinese officials arguing the sanctions undermine the "sound and stable development" of bilateral relations between two of each other's largest commercial partners. The measures risk amplifying existing trade tensions and could disrupt supply chains across energy, technology, and defense sectors.

This isn't the first confrontation over the issue. In July 2025, the EU sanctioned two smaller Chinese banks, prompting reciprocal Chinese sanctions against Lithuanian financial institutions. The pattern suggests both sides are prepared for escalating retaliatory measures, creating uncertainty for multinational corporations operating across these markets.

Without a diplomatic resolution, affected Chinese firms may be forced to restructure operations or shift sourcing patterns, while European businesses with exposure to Chinese markets face potential countermeasures. The situation reflects broader geopolitical tensions, with American leaders simultaneously pressing China and India to halt Russian oil purchases and threatening economic consequences.

Chinese officials maintain they tightly regulate exports of dual-use goods and emphasize that both EU and US firms maintain some trade ties with Russia. The Foreign Ministry reiterated China's position as "neither a party nor a creator of the Ukraine crisis" while calling for dialogue over sanctions.

Attempts to reach several of the sanctioned companies for comment were unsuccessful. European Commission representatives didn't immediately respond to requests for additional details on the specific allegations against the Chinese firms.