Beijing has placed seven European companies on its export control list, banning them from accessing dual-use goods from China. The official reason provided by the Chinese Ministry of Commerce is clear: having sold weapons to Taiwan or being “colluded” with the island. This is a rare move towards Europe, which marks a qualitative leap in the pressure exerted by Beijing on the Taiwanese dossier. So far, in fact, Chinese retaliation had mainly affected the large US defense groups, Taipei’s main military suppliers.
What changes with sanctions
The provision prohibits any entity – Chinese or foreign – from transferring so-called dual use goods to the seven European companies, i.e. technologies, software or components that can be used in both the civil and military sectors. These also include strategic materials such as some rare earths, fundamental for the production of drones and microchips.
The block is immediate and total, although Beijing reserves the right to authorize individual supplies in exceptional cases. The measure, the Chinese ministry specified, is adopted to “protect national security” and comply with international obligations, including those on non-proliferation.
At the same time, China has sought to contain the political impact of the measure, underlining that the restrictions only concern dual-use goods and “do not affect normal trade between China and Europe”. A message addressed directly to Brussels, informed in advance through bilateral dialogue channels.
Which European companies are in the crosshairs
In detail, the seven affected entities cover different segments of the defense and aerospace industry. These include: Hensoldt Ag, owned by the German government and Leonardo, who hold an equal share of 25.1%; the Belgian small arms manufacturing companies Fn Browning and Fn Herstal; Excalibur Army, part of the Czech industrial group CSG; Omnipol, a historic Czech company active in aerospace and defense; SpaceKnow, also Czech, specializing in satellite and geospatial data and, finally, the Czech Aeronautical Research and Testing Institute.
Four of the seven entities are therefore Czech, which immediately attracted political attention in Prague. Foreign Minister Petr Macinka has asked Beijing for formal clarifications, instructing the embassy to investigate the matter further. For its part, Excalibur Army has downplayed the impact of the restrictions, stressing that it does not directly depend on Chinese dual-use technologies.
The Taiwan node and the European line
At the center of the conflict remains Taiwan, which Beijing considers an integral part of its territory. The island, governed democratically, rejects this claim and claims the right to decide its own future independently.
Military-wise, Taipei is largely dependent on the United States. Europe, on the other hand, over the last thirty years has avoided sales of heavy weapons, such as fighters, precisely so as not to provoke Chinese reactions. However, in recent years, especially after Russia’s invasion of Ukraine in 2022, some capitals in Central and Eastern Europe have shown increasing openness towards forms of cooperation with Taiwan.
Beijing’s decision fits into this context, which many observers also read as a political signal addressed to the European Union. Not surprisingly, the move comes after the latest package of European sanctions against Moscow, which included several Chinese companies accused of supporting the Russian war effort.
The reactions: between European caution and Taiwanese pragmatism
The first official reactions are marked by caution. No immediate positions were received from the European Union, while some companies involved – such as Hensoldt – have made it known that their core business will not be affected by the Chinese restrictions.
Taiwan’s response, however, is clearer. Defense Minister Wellington Koo reduced the scope of the sanctions, recalling that this is not an isolated precedent. According to Koo, the measure will not compromise the island’s ability to obtain armaments, thanks to a diversified network of suppliers. “This is not the first time China has taken such measures,” he explained, adding that Taiwan will continue to source equipment through alternative channels.
More than the immediate impact, which could remain limited, especially for large companies, the Chinese decision takes on value as a political signal. This is in fact the first time that Beijing has used the commercial blacklist against European companies, reiterating its red line on Taiwan also towards its European partners: any form of military cooperation with the island can have consequences. It remains to be seen whether this is an isolated episode or the beginning of a more assertive phase in relations between China and Europe.