The Ministry of Commerce of China File photo: VCG

China added seven entities from the EU, including FN Herstal, to its export control list, effective from Friday, to safeguard national security and interests, and to fulfill international non-proliferation obligations, China's Ministry of Commerce (MOFCOM) said in a statement on Friday. The decision was made in accordance with the relevant provisions of the Export Control Law and the Regulations on Export Control of Dual-Use Items, MOFCOM said.

In a separate statement, a MOFCOM spokesperson emphasized that the actions taken by the Chinese side, which are in accordance with the law, are aimed only at a small number of military-related entities in the EU. These entities have either participated in arms sales to Taiwan island or have colluded with Taiwan authorities. The relevant measures only target dual-use items. They do not affect normal economic and trade exchanges between China and the EU, and law-abiding EU entities have absolutely nothing to worry about, the spokesperson said. The Chinese government will, as always, work with all countries to firmly safeguard world peace and regional stability, and jointly ensure the stability of global industrial and supply chains, said the spokesperson.

According to the MOFCOM decision, exporters are prohibited from exporting dual-use items to the seven entities, and foreign organizations and individuals are prohibited from transferring or providing dual-use items originating from China to these entities; all ongoing related activities must also be halted immediately. In special circumstances where an export is truly necessary, exporters must submit an application to MOFCOM for permission.

Prior to the announcement of the measures, China had already informed the EU of the relevant situation through the bilateral export control dialogue mechanism, the spokesperson said.

The decision was made in accordance with relevant Chinese laws and regulations, and reflects China's commitment to fulfilling international non-proliferation obligations, a Chinese analyst said, noting that the move also serves as a deterrent to those companies that disregard China's core interests. 

The seven entities are predominantly major European defense contractors, aerospace research institutes and satellite intelligence firms, among which two are from Belgium, one is from Germany and four are from the Czech Republic. In 2024, then-CEO Thomas Mueller of German sensor and avionics firm Hensoldt AG said in a call with analysts that Hensoldt had delivered two units of its TRML air defense radar to Taiwan, according to a report by the South China Morning Post on Friday. 

Zhang Junshe, a Chinese military affairs expert, told the Global Times on Friday that the companies placed on the export control list have either engaged in arms sales to Taiwan or have colluded with Taiwan authorities, driven by self-interest and supported by certain political forces in their countries. This is undoubtedly a serious provocation against China's sovereignty and will inevitably be met with countermeasures from China that are reasonable, legal, and forceful, Zhang said.

China has always been committed to strengthening dialogue and consultation, as well as deepening China-EU economic and trade cooperation. It's noteworthy that China's legal listing of these entities is highly targeted without affecting normal economic and trade exchanges between China and the EU. 

On Thursday, when Chinese Commerce Minister Wang Wentao met with two heads of EU industrial heavyweights - Ola Källenius, president of the European Automobile Manufacturers' Association and chairman of Mercedes-Benz Group AG, and Airbus CEO Guillaume Faury, respectively, he emphasized China's commitments to expand high-level opening-up will provide stable expectations and broad opportunities for foreign companies, warning against the EU's recent protectionist-leaning restrictive measures that have caused substantial harm to China-EU economic and trade relations, according to posts on MOFCOM website on Friday.

Wang told Faury that China is willing to strengthen trade and investment cooperation with the EU to promote the stable and healthy development of China-EU economic and trade relations and expressed hope that Airbus will play a positive role in promoting the EU to meet China halfway and properly resolve differences through dialogue and consultation.