China has issued strongly-worded objections against European Union (EU) sanctions on two Chinese banks ahead of the two sides’ upcoming summit, according to multiple media reports. The sanctions were part of a package targeting Russia, announced last Friday.
Details of the package have not yet been made public, but it includes penalties against Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank – which the EU claims used crypto transactions to import Russian goods covered by existing EU sanctions. The Ministry of Commerce (Mofcom) has strenuously denied the allegations.
“China expresses strong dissatisfaction and resolute opposition to this move,” Mofcom said in a statement on Monday. China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies and financial institutions.”
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China and the EU have also been clashing over China’s tightened export controls on rare earths, European tariffs on Chinese-made electric vehicles, market access rules and what the EU characterises as China’s “flooding” of global markets.
European Commission President Ursula von der Leyen has also sharply criticised Beijing’s stance on Russia, which she argued was “de facto enabling Russia’s war economy” with regards to its invasion of Ukraine. Earlier this month, the Post reported that Foreign Minister Wang Yi said Beijing did not want Russia to lose in Ukraine because that could tilt the US’ focus further towards Beijing.
Von der Leyen and European Council President Antonio Costa are scheduled to meet President Xi Jinping and Premier Li Qiang in Beijing on Thursday. Expectations for major breakthroughs in relations were low, with Mofcom declaring that the latest sanctions would “severely undermine China-EU economic, trade and financial cooperation.”
