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Home World News Europe

The European Union and the United States Hit Russia With New Sanctions and Blacklists Chinese Companies

by NGF News
March 8, 2024
in Europe, North America, World News
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The European Union and the United States Hit Russia With New Sanctions and Blacklists Chinese Companies

Joe Biden announcing new US-EU sanctions package to the press. Photo Credits: NHK World Japan

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Key Summary

  • EU and US impose new sanctions targeting Russian aggression, with focus on China for the first time.
  • Chinese companies accused of aiding Kremlin in acquiring forbidden military technology and weapons.
  • Sanctions aim to deter Russian military aggression, uphold international norms, and human rights.
  • Targeting Chinese firms exacerbates geopolitical tensions and may strain diplomatic relations.
  • Multinational agreements aim to cripple Russia’s military capabilities, hinder its economic infrastructure, and promote ethical behavior.

As of this week, the European Union (EU), in collaboration with the United States agreed to impose a new sanction package against Russia, targeting companies based in mainland China for the first time. The blacklisting of Chinese companies was founded on the grounds of escalating tensions within the geopolitical landscape. More specifically, the package has a heavy focus on suspecting Chinese companies of helping the Kremlin get hold of forbidden military items in the form of advanced technology and warfare weapons. United States President Joe Biden admitted that the recent death of longtime Kremlin critic and political opponent, Alexei Navalny, as well as Putin’s other acts of “aggression abroad and repression at home”, greatly influenced the advancement of the new package. The problem at hand is based on territorial disputes, geopolitical rivalry, and human rights concerns in the war between Russia and Ukraine.

The EU’s targeting of Chinese-based companies and agreement of new Russian sanctions stems from a wave of security tensions and geopolitical concerns, dating as far back as Russia’s 2014 annexation of Crimea. Additionally, it factors the Russian government’s alleged support for separatist movements based in both Western Russia and Eastern Ukraine, as well as human rights abuse allegations and political repression within Russian borders. In addition to Chinese companies, the new sanctions also target individuals, entities, and companies based in Turkey, Serbia, Sri Lanka, Thailand, Kazakhstan, Singapore, and India. According to key EU members and non-member allies such as the United Kingdom and the United States, the sanctions aim to uphold international norms and principles by deterring aggression from the Russian military and its suspected separatist groups.

Some of the blacklisted Chinese companies have been investigated internationally and formally accused of involvement in human rights violations, including partaking in illegal surveillance activities and using forced labor. Moreover, the EU seeks to remain committed to its human rights and ethical business practices by taking action on cybersecurity threats and unfair economic competition.

Chinese Foreign Ministry Spokesperson Mao Ning Announces Hit on Chinese Companies Amid U.S-EU Sanctions. Photo Credits: AP

The EU’s decision to impose new sanctions on Russia and other supporting companies, particularly based in China, will develop multifaceted economic and diplomatic implications. Passing a multi-national agreement to engage in targeted sanctions and business blacklisting can disrupt Russia’s economic activities, particularly in trade, investment, and economic cooperation between itself and the European Union. Consequently, Putin and his government can expect disruptions to supply chain systems, market volatility, and confidence in business activities, thereby impacting Russia’s national economic growth and stability.
Moreover, new sanctions and blacklistings on China will exacerbate geopolitical tensions and rivalries between major power states, including China, Russia, the U.S., and the EU. This course of action will not only further polarize the prospect of partnership building between international nations whose status quo has been defined by fragile diplomatic relationships, but will also undermine efforts to address mutual challenges, such as domestic and international terrorism, climate change, and global health crises.

Considering the historical history of the involved nations, the sanctions and blacklisting can be expected to further strain diplomatic relations between the EU and the affected countries, potentially resulting in some governments considering retaliatory measures and diplomatic standoffs. This will immediately complicate any attempt to negotiate trade agreements, resolve regional conflicts, and coordinate security responses to transnational threats.

The sanctions designed by the U.S. and its European allies are strategically intended to cripple Russia’s overall military capabilities, particularly by barricading its access to critical military technology and resources. By doing this, western allies hope to undermine Putin’s military capacity and its year-long aggressive actions in Ukraine. Targeting Russia’s elite oligarchs, while restraining both its industrial and economic infrastructure will not only inflict a direct impact on Russia for its aggressive nature, but will also hinder the capability to manufacture, repair, and supply the necessary weaponry for its military operations in bordering Ukraine.

A nuanced and soft power approach is necessary to address the challenges presented by the European Union’s new sanctions on Russia and companies accused of supporting its agendas. Both the United States and its European allies must prioritize upholding the norms and principles of international law, including human rights, ethical business practices, and the rule of law while taking action. This means pursuing collaborative initiatives with Russia, China, and the other involved nations to reach signed agreements. Dialogue with multilateral organizations and civil society must be conducted to hold perpetrators of human rights abuses accountable and promote respect for human dignity and freedom.

A fundamental process to avoid political escalation is differentiating between the concerns of Russia and China. Engaging in a two-way dialogue to selectively remove sanctions related to the Ukraine conflict could prompt goodwill from the Kremlin. Regarding China, Beijing is unlikely to reform its policies concerning sanctions over human rights abuses in Xinjiang. Still, the EU must prioritize avoiding overreaching with sanctions by ensuring the blacklisting criteria are transparent, fair, and applied equally to all companies within and outside mainland China.

The decision of both the European Union and the United States to impose hundreds of sanctions on Russia while blacklisting Chinese companies highlights the interconnected and complex nature of geopolitics, human rights laws, and economics, even in the modern era. While these actions are intended to address mainly security and human rights concerns, they also seek to promote ethical behavior within the political sphere. On the other hand, they also hold the power to cause significant implications for global cooperation, government stability, and international diplomacy. As analyzed, the international community can navigate these rising global challenges toward a more diplomatic and peaceful international scene by upholding international norms, pursuing open dialogue, and researching compromises to ensure a just ruling. 

Author: Kay Adu-Gyamfi

Tags: chinachinese companieseuropean uniongeopoliticsGlobal Newsnewsrussiasecurityunited statesworld news
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