In response to China's alleged assistance to Russia in its invasion of Ukraine, the European Union (EU) is contemplating imposing sanctions on Chinese companies. This move has been criticized by Beijing as "illegal sanctions" and "long-arm jurisdiction" against China.

China's Ministry of Foreign Affairs expressed its opposition to these sanctions, stating that Chinese and Russian enterprises engage in normal exchanges and cooperation without targeting third parties. The ministry emphasized that third parties should not interfere or influence these collaborative efforts and vowed to protect the legitimate rights and interests of Chinese enterprises.

European officials have been pushing for stricter sanctions against Chinese companies, aiming to impose the harshest penalties on approximately two dozen companies accused of assisting Russia since the commencement of the Ukraine invasion. The objective is to close loopholes, target circumvention routes, and further diminish revenues, according to sources cited by The Guardian.

China has faced accusations of aiding Russia by serving as a backdoor access point to resist the extensive sanctions imposed by the United States and Europe. In February 2022, Beijing agreed to purchase 100 million tons of coal from Moscow, providing a lifeline to Russia amid the sanctions.

A think tank's sanctions team reportedly found that companies in China and Hong Kong play a crucial role as intermediaries in the shipment of battlefield technology to Russia, which is subject to Western sanctions. These accusations have prompted the proposal to sanction specific companies rather than the countries in which they are based. The proposed sanctions would also impact companies based in Turkey, India, Thailand, and Sri Lanka.

The targeted companies are alleged to facilitate the acquisition of essential components for Russian production of drones, tanks, and guided missiles from EU member states. These components, including microelectronics and ball bearings, are then sold to countries like China, the United Arab Emirates, Serbia, and Kazakhstan, which subsequently sell them to Russia.

If the proposal is approved, it will further strain relations between China and Europe. In the summer of 2023, EU members supported a plan to seek vital minerals and resources from non-Chinese sources, leading to Beijing canceling a summit with European officials.

Amidst these tensions, China and Russia have reaffirmed their commitment to a "no-limits partnership" and "close personal interaction." Russian President Vladimir Putin is scheduled to visit Beijing later this year, further underscoring the alliance between the two nations.

While the EU considers sanctions against Chinese companies for their alleged assistance to Russia in the Ukraine invasion, the diplomatic implications of such measures could have broader repercussions on the fragile relationship between China and Europe.