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Brussels is trying to stop hi-tech products reaching the battlefields of Ukraine via China. Pictured is a Ukrainian serviceman firing a howitzer towards Russian troops. Photo: Reuters

Exclusive | EU set to push Xi Jinping to stop Chinese firms getting around sanctions on Russia

  • The bloc will push the Chinese president to act against 13 companies, and may name and shame the firms if they do not secure a firm commitment
  • Action on sanctions and a commitment for China to re-engage with Ukraine’s peace formula as seen as two potential gains at a summit in Beijing next week

EU leaders will personally ask Chinese President Xi Jinping to rein in 13 Chinese entities accused of circumventing sanctions on Russia.

They will ask him to put a stop to the practice at a crunch summit in Beijing next week, and his response may determine whether they decide to name and shame the companies in the latest package of sanctions.

The sanctions are designed to stop companies linked to the Russian military from accessing European-made goods, according to several people familiar with the summit preparation.

Chinese firms were initially excluded from the bloc’s 12th package of sanctions, but the names of the companies in question may be added to the list if the EU does not secure a firm commitment to act.

Important member states, including France and Germany, prefer to raise the issue with the very top leadership in Beijing.

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Ukraine says Russian strike killed over 50 in one of the deadliest attacks of the war

Ukraine says Russian strike killed over 50 in one of the deadliest attacks of the war

There is a sense that decisions are highly centralised in the Chinese political system, and while dialogue continues with Chinese diplomats in Europe, Brussels now wants to take it to a higher level.

EU leaders, including Council and European Commission Presidents Charles Michel and Ursula von der Leyen, as well as the bloc’s top diplomat Josep Borrell, are preparing to fly to the Chinese capital for two days of talks, on December 7 and 8.

Ambassadors from the 27 member states met in Brussels on Wednesday to discuss summit preparations, and greenlit an orientation note Michel’s team had prepared to gain a mandate for the summit.

Sanctions circumvention was described as the big issue by people in attendance, although ambassadors did not delve into specifics on the Chinese companies in question.

EU stands by Global Gateway advisory roles for firms linked to Beijing

The debate, which lasted 90 minutes, was largely uneventful, with the note highlighting the bloc’s main grievances with China on issues such as trade, climate and geopolitics.

The European Union estimates that up to 70 per cent of sensitive, hi-tech products reaching the Russian military are coming via China.

In June, after consultations with Chinese Ambassador Fu Cong and representatives from the Chinese Ministry of Commerce, Brussels dropped plans to add five Chinese companies to a blacklist as part of its 11th package of sanctions.

The Chinese side said it would work to ensure those businesses stop reselling hi-tech goods made in Europe that are flowing to Russia’s war machine, EU sources said.

EU leaders will be asking Xi for evidence of what China has done to try to curtail the practice, based on the diplomatic commitment made in June.

A second potential deliverable is to get a commitment from China to re-engage with Ukrainian President Volodymyr Zelensky’s peace formula.

Beijing dispatched its special envoy Li Hui to a second meeting of more than 40 countries to discuss the war in Ukraine in Saudi Arabia in August. However, Li skipped the follow-up in Malta, and with a new round of talks planned in the coming weeks, Brussels wants to see China come back to the table.

The leaders will ask China, once again, to use its influence to halt Russia’s war of aggression against Ukraine, but expectations are running low on this front.

They will also push China on the yawning bilateral trade deficit and perceived unfair trade practices. The commission is currently investigating subsidies in China’s electric vehicle sector and thought to be eyeing probes in other sectors crucial to the green transition.

But few concrete deliverables are expected, and a commitment from Xi on sanctions would be seen as an unlikely coup.

European firms in China will be ‘squeezed out’, EU leader says in de-risking bid

China has railed against the use of unilateral sanctions. In June Fu told the Post “the Chinese government did not commit [to] anything … that’s the bottom line” when asked about cooperation with Brussels on the instruments.

He added: “We understand the concerns of the EU in terms of trying to prevent the circumvention of the sanctions, meaning that some of the items from the European market might be re-exported to Russia and so … according to their view, that needs to be resolved.

“We’ll see what happens in the future.”

Next week the European leaders will also discuss peace efforts in the Middle East and the issue of Taiwan, where Brussels is braced for possible tensions surrounding the island’s presidential elections in January.

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