The United States is reportedly planning to impose sanctions on Chinese firms found to be assisting Russia in its conflict with Ukraine. This move mirrors recent proposals by the European Union, aimed at halting the ongoing war.
Gerald Connolly, a member of the U.S. House Committee on Foreign Relations, stated that lawmakers have been contemplating these sanctions more seriously following the European Union's proposal. "China has to understand that the same kinds of sanctions which are beginning to really take hold in Russia and are affecting Russian productivity, economic performance, and quality of life, can also be applied to China," said Connolly. If enacted, these measures would represent the first direct penalty against Beijing for its continued support of Russia during its conflict with Ukraine. According to RBC-Ukraine, such actions could inflict serious damage on an already struggling Chinese economy, particularly given the current downturn in its real estate sector.
However, these proposed sanctions could also directly impact the United States economy due to the extensive trade links between the two nations. Broad sanctions against China might alter its stance towards aiding Russia as it grapples with preventing further economic decline this quarter. The European Union is expected to impose sanctions on Chinese companies by month-end according to CNBC. The EU's top diplomat Josep Borrell noted that plans to sanction China have become more pressing following the death of Alexei Navalny, a Russian leader who was vocally opposed to the war.
The onset of conflict in Ukraine has seen Russia and China forge closer ties as both nations share a mutual interest in challenging U.S dominance globally. China's Foreign Minister Wang Yi was quoted by CNBC stating that any trade restrictions imposed on China would constitute a historic mistake by those countries implementing them.
