The Chinese government protested the enactment by the United States of sanctions against a series of state-owned companies, banning them from doing business with US-based companies for alleged cooperation with Russia. The Chinese Ministry of Commerce criticized the measure, saying that it was a typical form of long-arm jurisdiction and would damage the interests of these companies.
China opposes enactment of sanctions against state-owned companies
The Chinese government has expressed opposition to the recent enactment of a series of sanctions against a number of state-owned companies that allegedly collaborated with Russia. These companies, primarily in the electronics business, allegedly purchased and provided U.S. technology to Russia as a bridge, circumventing sanctions established by the Office of Foreign Assets Control (OFAC) against Russian companies.
A statement from the Chinese Ministry of Commerce condemned U.S. overreach on this move. The statement rejected these measures, saying:
that “this is a typical unilateral sanction, a form of ‘long-arm jurisdiction’ that seriously undermines the legitimate rights and interests of companies and affects the security and stability of global supply chains.”
It further called on China to “right this wrongdoing”and protect the rights and interests of Chinese companies
This is not the first time Chinese companies have been sanctioned for allegedly collaborating with other countries to evade existing sanctions; in March, a group of Chinese companies weredesignatedfor collaborating with Iranian companies that supported Russian war efforts.
Another group of Chinese companies was sanctioned for integrating a shadow banking system for Iranian companies.
China, the United States, and Sanctions
Some experts worry about how the enactment of these sanctions will affect U.S.-China relations, which have already been affected by developments in the Taiwan issue. Hank Paulson, former U.S. Treasury Secretary, says that “U.S.-China relations are on the brink,” and that recent government policies have not worked to appease the situation.
In a recent Financial Times interview, Paulson talks about the consequences of these policies, declaring that:
If the U.S. goes far beyond what its allies and partners want in order to curb trade and investment with China, the result will be that the U.S. will be isolated.
Recently, President Joe Biden also expanded a series of sanctions against Russian military companies.
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