Chinese firms were initially excluded from the bloc’s 12th package of sanctions, but the names of the companies in question may be added to the list if the EU does not secure a firm commitment to act.
Important member states, including France and Germany, prefer to raise the issue with the very top leadership in Beijing.
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Ukraine says Russian strike killed over 50 in one of the deadliest attacks of the war
Ukraine says Russian strike killed over 50 in one of the deadliest attacks of the war
There is a sense that decisions are highly centralised in the Chinese political system, and while dialogue continues with Chinese diplomats in Europe, Brussels now wants to take it to a higher level.
EU leaders, including Council and European Commission Presidents Charles Michel and Ursula von der Leyen, as well as the bloc’s top diplomat Josep Borrell, are preparing to fly to the Chinese capital for two days of talks, on December 7 and 8.
Ambassadors from the 27 member states met in Brussels on Wednesday to discuss summit preparations, and greenlit an orientation note Michel’s team had prepared to gain a mandate for the summit.
Sanctions circumvention was described as the big issue by people in attendance, although ambassadors did not delve into specifics on the Chinese companies in question.
EU stands by Global Gateway advisory roles for firms linked to Beijing
EU stands by Global Gateway advisory roles for firms linked to Beijing
The debate, which lasted 90 minutes, was largely uneventful, with the note highlighting the bloc’s main grievances with China on issues such as trade, climate and geopolitics.
The EU estimates that China is responsible for 70 per cent of the circumvention it sees, with hi-tech products made in Europe ending up on the Ukrainian battlefield via the world’s second-largest economy.
The Chinese side said it would work to ensure those businesses stop reselling hi-tech goods made in Europe that are flowing to Russia’s war machine, EU sources said.
EU leaders will be asking Xi for evidence of what China has done to try to curtail the practice, based on the diplomatic commitment made in June.
A second potential deliverable is to get a commitment from China to re-engage with Ukrainian President Volodymyr Zelensky’s peace formula.
The leaders will ask China, once again, to use its influence to halt Russia’s war of aggression against Ukraine, but expectations are running low on this front.
They will also push China on the yawning bilateral trade deficit and perceived unfair trade practices. The commission is currently investigating subsidies in China’s electric vehicle sector and thought to be eyeing probes in other sectors crucial to the green transition.
But few concrete deliverables are expected, and a commitment from Xi on sanctions would be seen as an unlikely coup.
European firms in China will be ‘squeezed out’, EU leader says in de-risking bid
European firms in China will be ‘squeezed out’, EU leader says in de-risking bid
China has railed against the use of unilateral sanctions. In June Fu told the Post “the Chinese government did not commit [to] anything … that’s the bottom line” when asked about cooperation with Brussels on the instruments.
He added: “We understand the concerns of the EU in terms of trying to prevent the circumvention of the sanctions, meaning that some of the items from the European market might be re-exported to Russia and so … according to their view, that needs to be resolved.
“We’ll see what happens in the future.”
Next week the European leaders will also discuss peace efforts in the Middle East and the issue of Taiwan, where Brussels is braced for possible tensions surrounding the island’s presidential elections in January.