Beijing (Brussels Morning Newspaper) – China imposed sanctions on two European Union-based banks in response to the EU’s sanctions on certain Chinese lenders related to Russia’s invasion of Ukraine. This action fulfils China’s commitment to retaliate, as announced by China’s Ministry of Commerce.
On July 18, the European Union announced its 18th package of sanctions against Russia due to the war in Ukraine, featuring measures to target the Russian oil and energy sectors further. The sanctions also included steps against entities from third nations, namely from China, for directly or indirectly assisting Russia’s military complex.
Why did China sanction two EU-based banks?
In response to sanctions, Beijing cautioned Brussels to revoke its sanctions against two Chinese banks or expect retaliation.
“The EU, disregarding China’s solemn position, insisted on adding two Chinese financial institutions to its sanctions list for alleged involvement in Russia, and formally implemented the sanctions on August 9,”
Stated the statement. It added the move
“severely damages the legitimate rights and interests of Chinese companies, and has a serious negative impact on China-EU economic and trade relations and financial cooperation.”
The sanctions targeted two regional Chinese banks—Suifenhe Rural Commercial and Heihe Rural Commercial—and included five additional companies. Bloc said that the banks were listed for providing cryptocurrency services that were frustrating the purpose of the sanctions.
Which Lithuanian banks are now on China’s countermeasure list?
The Ministry of Commerce announced on Wednesday that China has added UAB Urbo Bankas and AB Mano Bankas to its countermeasure list. The ban prohibits organisations and individuals in China from engaging in transactions, cooperation, or other activities with the institutions. UAB Urbo Bankas and AB Mano Bankas are both located in Lithuania. Beijing did not elaborate on the basis for their selection; however, the decision is in line with recent tensions with the Baltic States.
The Ministry of Foreign Affairs expressed hope that the EU would ‘value’ its relationship with China, ‘correct their mistakes’ and ‘stop doing things that harm China’s interest.’
What has caused Lithuania’s relationship with China to deteriorate?
Last year, Lithuania expelled three Chinese embassy staffers, saying they were not accredited. Beijing had previously downgraded diplomatic relations with Lithuania after the country decided to allow a Taiwan representative office in Vilnius.
Moreover, relations between Beijing and Brussels have deteriorated recently, partly because of China’s backing of Russia’s war and trade disputes. Last month, Beijing responded to European Commission President Ursula von der Leyen’s accusations of trade manipulation and restricted access for European companies.
