China Implements Countermeasures Against EU Financial Institutions Amid Sanctions

On Wednesday, China's Ministry of Commerce (MOFCOM) revealed that it would impose countermeasures on two financial institutions from the European Union, namely UAB Urbo Bankas and AB Mano Bankas. This action follows the EU's decision on July 18 to designate these Chinese banks within its sanctions against Russia. The MOFCOM stressed that China's measures would take effect immediately, preventing both organizations and individuals within China from engaging in any related transactions, partnerships, or activities with the specified EU banks.

The ministry emphasized that these counteractions serve as a reciprocal response against what they deem the EU's unilateral sanctions and claims of long-arm jurisdiction. A spokesperson from MOFCOM stated that the inclusion of the Chinese banks on the EU's sanctions list under the allegations of their involvement with Russia, which officially took effect on August 9, severely contravenes international law and disrupts the economic interests of Chinese enterprises.

China's approach aims to safeguard its sovereignty, security, and developmental interests, adhering to its Anti-Foreign Sanctions Law, among other regulations. MOFCOM has expressed hope that the EU will reconsider its actions, recognizing the importance of maintaining a robust cooperative relationship with China in economic and financial sectors while ceasing activities that compromise these interests.

Experts, including Jian Junbo from Fudan University and Zhang Jian from the China Institutes of Contemporary International Relations, voiced their opinions, branding the EU's actions as unilateral and lacking in legitimate basis under international law. They called for the EU to acknowledge that such measures only heighten tensions in the context of China-EU relations and urged a reevaluation of these practices to foster a more stable economic partnership.

China asserts its long-standing global position on opposing unilateral sanctions not sanctioned by international law or the UN Security Council. The focus remains on maintaining normal exchanges between Chinese and Russian enterprises, emphasizing that unwarranted EU sanctions should not disrupt legitimate business operations. Ultimately, Chinese officials hope that their countermeasures will make it clear that harmful policies will not be adopted without repercussions.