Many articles have been written about the impact of sanctions placed on Russian entities and individuals since the start of the Ukraine war. However, Chinese companies and people whose commercial activities have aided the Russian war machine have also felt the bite of Western sanctions. In addition, Chinese entities and individuals have also been targeted by US sanctions for activities that have nothing to do with the Ukraine war. These sanctions are primarily related to security breaches.
Are Russia and China close allies?
In February, following a video call with Russian President Vladimir Putin, Chinese President Xi Jinping described the two countries as “true friends who have been through thick and thin together.” Shortly after, the Kremlin released a statement supporting that narrative and said that together, the two nations served as a “stabilising force”. Despite this, China has expressed willingness to engage with “all parties” to achieve peace in Ukraine, including Europe.
What sanctions have been placed on Chinese entities and individuals?
- In December 2023, three Chinese entities: Asia Pacific Links Limited, Sinno Electronics Co., Limited, and Xinghua Co., Limited, were sanctioned for supplying goods used by Russia to conduct its war on Ukraine.
- As part of the largest UK sanctions package related to the Ukraine war, in February 2025, specific Chinese producers and suppliers of machine tools, electronics, and dual-use goods for Russia’s military, including microprocessors used in weapons systems were designated. These included:
- ACE Electronic (HK) Co Ltd – a Chinese company that has exported microelectronics to Russia.
- GSK CNC Equipment Co Ltd – China-based company that has supplied machine tools to the Russian defence sector.
- Neway CNC Equipment (Suzhou) Co Ltd– China-based company that has supplied machine tools to Russia.
- Ningbo Blin Machinery Co., Ltd. – China-based company that has supplied machine tools to the Russian defence sector.
- Ningbo Oturn Machinery Co., Ltd – China-based company that has supplied machine tools to the Russian defence sector.
- Poly Technologies, Inc – China-based company and exporter of defence equipment that has supplied common high priority goods and dual-use technology to the Russian defence sector, including radar and radio navigation equipment.
- Premera (H.K.) International co., limited – China-based company that has supplied microelectronics to sanctioned Russian entities.
- Rama Group LLC– Kyrgyzstan-based company that has exported microelectronics to Russia.
- Shvabe opto-electronics – China-based company that has supplied common high priority goods, including electrical components, to the Russian defence sector.
- Suzhou Parsun Power Machine Co., Ltd. – China-based mechanical and electrical maritime equipment producer that has been supplying equipment and components to the Russian defence sector.
- TKT-1997 Razvoj Limited – China-based industrial materials supplier that has exported common high priority goods, including microelectronics, to Russia.
- In December 2024, the EU targeted Chinese technology companies accused of bolstering Russia’s defence and security capabilities. These included four companies that supplied sensitive drone and microelectronic components to the Russian military. A full list of the Chinese companies subject to these sanctions can be found here.
- In February 2025, a further 25 Chinese entities alleged to be involved in supplying military goods or components to Russia or circumventing sanctions were designated by the EU. The Chinese Government protested strongly, stating that “normal exchanges and cooperation between Chinese and Russian businesses should not be interfered with or affected.”
US sanctions on Chinese entities and individuals
In January 2025, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Sichuan Juxinhe Network Technology Co., a Chinese cybersecurity company, and Yin Kecheng, a Shanghai-based cyber actor, believed to be directly involved with the Salt Typhoon threat actor and responsible for the recent targeting of the Treasury’s information technology systems.
Salt Typhoon is a threat actor believed to be run by China’s Ministry of State Security. It is responsible for several sophisticated cyber espionage attacks and intellectual property theft. Its primary target seems to be the United States.
The Treasury Department has also sanctioned Sichuan Silence Information Technology Company, a cybersecurity government contractor, and one of its employees, Guan Tianfeng, for their roles in developing and distributing malware used to infect firewalls.
The impact of sanctions on China’s economic interests
China is an entirely different country from other nations such as Iran, Russia, and North Korea, whose entities and individuals have been made subject to international sanctions. The sanctions mentioned above are not going to impact the economy as they have done in the States mentioned above. US tariffs present a far bigger problem for its already ailing economy. In addition, China is a significant player in the growing worldwide sanctions race, and it is its retaliation that could cause global problems because so many countries, including those in the EU and the UK and the US, depend on Chinese imports. For example, as it did in response to President Trump’s 2019 tariffs, it could manipulate the yuan exchange rate, causing market chaos.
So far, China has hit back only with words, and this is likely to be because a) the Government is too busy dealing with a potential US-China trade war and b) relatively few Chinese companies and people have been designated. But, I believe that the UK, US, and EU will have to be much more considered and cautious if they plan to impose more sanctions on Chinese interests. Poke the mighty Red Dragon too hard, and the entire world economy could be torched by its flames.
To discuss any points raised in this article, please call us on +44 (0) 203972 8469 or email us at mail@eldwicklaw.com.
This article does not constitute legal advice. For further information, please get in touch with our London office.
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