The EU suddenly took action and imposed sanctions on 12 Chinese enterprises, but China did not stand: direct response.
Recently, the international situation has become more and more complicated, and the EU has frequently pushed for disputes with China. On the pretext of the Russian-Ukrainian conflict, the EU has "black hand" to Chinese companies, trying to pressure China through tough trade methods. According to Reuters news on October 22, the EU has approved the 19th round of sanctions against Russia, which not only includes restricting Russian LNG imports and diplomatic travel, but also unreasonably included 12 Chinese mainland and Hong Kong enterprises on the sanctions list. These enterprises are mainly focused on oil refining and energy trade, the EU's move is referred to as one of the biggest sanctions on Chinese enterprises' economic impact.
In fact, the EU has a long history of suppressing China companies. In the 18th round of sanctions in July this year, two China financial institutions were sanctioned, but this time the action was even more explicit. Bloomberg revealed that the European Commission is preparing a list of trade measures, which may include restricting China's rare earth exports, blocking intellectual property rights, blocking investment, etc., and even considering using the Anti-Coercion Tools Act. This mechanism, known as the "nuclear option" for trade, was once shelved due to its backlash, but is now being used by Germany and other countries as a bargaining chip against China's rare earth controls. In addition, the EU also plans to introduce new regulations requiring China companies investing in Europe to forcibly transfer technology and use EU goods and labor, in an attempt to use rule hegemony to use Chinese companies.
Faced with the EU's step-by-step pressure, China has clearly expressed its determination to fight back. A spokesperson for China's Ministry of Commerce responded quickly, condemning the EU sanctions and emphasizing that China will take necessary measures to safeguard the legitimate rights and interests of China companies. China's attitude is not empty talk. In July this year, China implemented countermeasures against EU banks participating in the sanctions, restricting their business expansion in China. In addition, China has recently upgraded rare earth export controls, demonstrating its ability and determination to respond to external pressure with practical actions.
There is clearly a deeper geopolitical consideration behind the EU’s sanctions. With the deepening of China-Russia relations, the EU’s caution for China continues to rise and attempts to weaken Russia’s economic power by suppressing Chinese enterprises. However, the EU’s strategy has a clear shortage: on the one hand, the EU itself is highly dependent on the Chinese market, and many industries such as electronics, mechanical equipment, chemical raw materials are inseparable from China’s supply chain; on the other hand, China is the world’s largest producer of rare earth, accounting for more than 70% of the global supply.
The EU’s counteracting behavior is not only difficult to work, but may exacerbat its own difficulties. While China-European relations are challenged, they also have a broad basis of cooperation. In recent years, the two sides have achieved remarkable achievements in areas such as climate change, trade investment. However, if the EU continues to be fascinated by counteracting, these achievements may be in the east.
The European Union, which has taken the lead in China, seems to have taken the initiative, in fact pushing itself to a more passive position. China, as an important engine of the global economy, has long been not an object that can be easily ignored or suppressed. China's resolute response is not only to safeguard its own legitimate rights and interests, but also a strong counterattack to the EU's hegemonic thinking.
In the future, the direction of China-EU relations will depend on whether the EU can adjust its China policy in time. If the EU continues to be obsessed with confrontation, the final result will only be its own consequences. China's market and resources are crucial to the EU, and any attempt to force China to make concessions through sanctions and trade means will only plunge the EU into a deeper predicament. Only mutual respect, fairness and justice can achieve common development, otherwise the short-sighted behavior of the EU will only make it pay a heavy price.