China has protested against the US’ decision to impose sanctions on a number of national companies, accusing them of collaborating with Russia. The Chinese Commerce Ministry criticized the move, stating that it is a “typical form of long-arm jurisdiction” that harms the rights and interests of these companies. The companies in question, mostly in the electronics business, are alleged to have been used as intermediaries, purchasing US technology to deliver it to Russia and bypassing the sanctions imposed by the Office of Foreign Assets Control (OFAC) on Russian entities. China has called for the “wrongdoing” to be corrected and has vowed to safeguard the rights and interests of Chinese companies.
This is not the first time that Chinese companies have faced sanctions for allegedly cooperating with other countries to evade pre-existing sanctions. In March, a group of Chinese companies was designated for collaborating with Iranian companies that were aiding the Russian war effort. Another group of Chinese companies was sanctioned for integrating a shadow banking system for Iranian firms.
The enactment of these sanctions has raised concerns among experts about the potential impact on the bilateral relationship between the US and China, which has already been affected by developments regarding Taiwan. Former US Treasury Secretary Hank Paulson has warned that “The US-China relationship is on the brink,” and that the government’s recent policies are not helping to ease the situation. In a recent interview with the Financial Times, Paulson spoke about the consequences of these policies, stating that if America goes too far in curtailing trade and investment with China, the result will be to isolate the US.
Recently, President Joe Biden extended a series of sanctions against military and industrial companies in Russia. However, it remains to be seen how this will affect the relationship between the US and China, which has already been strained by issues such as trade, human rights, and the pandemic. The situation is complicated by the fact that China is a major player in the global economy, with many countries relying on its manufacturing capabilities and supply chains.
In conclusion, the US’ decision to impose sanctions on Chinese companies has sparked a strong response from the Chinese government, which has accused the US of overreaching and harming the rights and interests of Chinese companies. The situation has raised concerns about the potential impact on the US-China relationship, which has already been strained by a number of issues. As the situation continues to unfold, it remains to be seen how it will affect the global economy and the relationship between these two major powers.
