China Bans Dual-Use Items Exports to 7 European Entities Over Taiwan Arms Sales

China bans dual-use items exports to 7 European entities over Taiwan arms sales

China's Export Ban and Its Implications

Background of the Export Ban

BEIJING, April 24 (Reuters) - China's Commerce Ministry said on Friday it was banning exports of dual-use items to seven European entities over arms sales to Taiwan, placing them immediately on its export control list, in a rare case of Europe-targeted, Taiwan-related sanctions.

Europe's Arms Sales to Taiwan

Taiwan, which China views as its own territory, gets most of its weapons from the U.S. Europe has not sold any big-ticket items like fighter jets to Taipei for some three decades, fearful of raising the ire of Beijing.

Entities Affected by the Ban

The entities, including German defence electronics firm Hensoldt AG and Belgian-based defence and sporting arms manufacturer FN Browning, have participated in arms sales to Taiwan or "colluded with Taiwan," a commerce ministry spokesperson said in a statement.

There was no immediate comment from Taiwan's government, the EU or FN Browning.

"We are currently verifying the facts and will assess the situation in due course," Hensoldt told Reuters.

Details of Dual-Use Items and Restrictions

Definition of Dual-Use Items

Dual-use items are goods, software or technologies that have both civilian and military applications, including certain rare earth elements that are essential for making drones and chips.

Scope of the Ban and Enforcement

The ministry also said foreign organisations and individuals are prohibited from transferring or providing dual-use items originating from China to the seven entities and any related activities must be stopped immediately.

Exceptions and Case-by-Case Approvals

The ministry signalled that China reserved the right to approve shipments on a case‑by‑case basis in exceptional circumstances, saying exporters of dual‑use items could apply to the ministry when an export was deemed “indeed necessary” for the entities.

International Reactions and Broader Context

China's Communication with the EU

China informed the European Union about the situation through the bilateral export control dialogue mechanism before the announcement, according to the ministry.

Impact on China-Europe Relations

"The measures only apply to dual-use items and do not affect normal economic and trade exchanges between China and Europe," the spokesperson said. "Law-abiding EU entities with integrity have absolutely no need to worry."

European and Global Perspectives on Taiwan

While many countries, especially in Europe, are nervous about any defence cooperation with Taiwan due to fears of Chinese retaliation, Taipei has found an increasingly sympathetic ear in parts of Central and Eastern Europe, especially since Russia invaded Ukraine in 2022.

China's Previous Sanctions and Taiwan's Response

China has repeatedly sanctioned major U.S. arms makers for making sales to Taiwan, most recently in December following the U.S. announcement of an $11 billion weapons sale package to the island.

Taiwan's democratically elected government rejects Beijing's sovereignty claims, saying only the island's people can decide their future.

(Reporting by Shi Bu and Liz Lee; Additional reporting by Ben Blanchard in Taipei; Editing by Thomas Derpinghaus, William Maclean)