Ukraine war: US warns China to halt exports that support Russia or face ‘further steps’

“PRC companies are providing Russia with significant quantities of machine tools, microelectronics, optics, UAV and cruise-missile technology, and nitrocellulose, which Russia uses to make propellant for weapons.

“These materials are filling critical gaps in Russia’s defence industrial base, which had otherwise suffered significant setbacks due to our sanctions and export controls.”

The provision of nitrocellulose has come up repeatedly in discussions among Washington policymakers about what constitutes the provision of lethal aid to Russia.

In a US Senate Armed Services committee hearing last month, Republican senator Tom Cotton of Arkansas suggested to Director of National Intelligence Avril Haines that China had already overstepped a “red line” Biden had set when he warned Beijing not to supply Russia with lethal weapons.

In response, Haines said: “There was a lot of focus on China not providing lethal support and what they have done is to try to avoid what is characterised as lethal support – in other words, a fully constructed gun or weapon system.”

“But what has happened in the meantime is they provided effectively dual-use materials such as nitrocellulose, [and] a whole series of critically important long poles in the tent for Russia’s reconstitution of the defence industry.”

The US Treasury Department last month announced sanctions on 20 Hong Kong and mainland Chinese companies for their alleged roles in the development of Russia’s industrial base and military.
Dozens of other businesses and individuals based in Russia, Turkey and elsewhere were also targeted.
Treasury Department followed up with additional sanctions largely trained on entities in Hong Kong and mainland China to curb the flow of goods that support the ability of Russia’s defence industry to continue the war it has waged since February 2022.
Biden has also been pushing allies in the Group of 7 to do the same.
US President Joe Biden attending the G7 summit near Bari, Italy, on Friday. Photo: AFP/Getty Images/TNS
In a meeting last week on countering Chinese industrial overcapacity, “unfair” state subsidies and state-led dominance of strategic industries, the G7 vowed to take action together against Chinese financial institutions boosting Russia’s wartime economy.
Discussions over similar action by Nato are likely to dominate a meeting of the security alliance, scheduled for next month in Washington.

At a joint press conference with Nato Secretary General Jens Stoltenberg on Tuesday, Blinken said: “We’re looking at countries that are supporting Russia’s defence industrial base, which is allowing Russia to continue the war, including China’s”.

“President Biden has made clear that we have a real concern, not with weapons being supplied by China to Russia,” Blinken added. “That’s not what they’re doing.”

“But what they are doing … is providing critical support to Russia’s defence industrial base.”

Washington’s top diplomat said 70 per cent of the machine tools and 90 per cent of the microelectronics imported by Russia now are coming via China.

“That has enabled Russia to keep their defence industrial base going to keep the war machine going to keep the war going,” Blinken said. “So that has to stop.”

The bilateral trade has surged in spite of blanket Western sanctions leveraged on Russia following its invasion of Ukraine, further anchoring the “no-limits” partnership between Beijing and Moscow.

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