China Imposes Export Controls on Seven European Defense Firms

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\r\n[The Financial News] China has targeted European Union (EU) defense companies over the Taiwan issue and even tightened the flow of rare-earth elements. Analysts say the targeted export controls show that the front line of the U.S.-China conflict is expanding into Europe.
On the 24th, the Ministry of Commerce of the People's Republic of China (MOFCOM) announced that it would add seven EU defense companies based in Belgium, Germany, and the Czech Republic to its export control list. The companies include Herstal and FN Browning in Belgium, Hensoldt in Germany, and Omnipol, Excalibur Army, SpaceKnow's Czech branch, and the Czech Aerospace Research Centre in the Czech Republic.
Under the measure, Chinese companies are completely barred from exporting dual-use goods, including rare-earth elements, to those firms. Overseas organizations and individuals are also prohibited from supplying Chinese dual-use goods to them, and any ongoing transactions must stop immediately. Dual-use goods are resources that can be used for both military and civilian purposes.
MOFCOM said the measure was taken "to safeguard national security and interests and to fulfill international obligations such as nonproliferation." It added that it had shared the relevant information with the EU in advance through export control dialogue channels.
In a separate statement, a spokesperson stressed that "the measure is limited to certain EU military-related companies" and that it was imposed because "those companies were involved in arms sales to Taiwan or in activities linked to Taiwan." The spokesperson added that it applies only to dual-use goods and does not affect normal economic and trade relations between China and the EU.
However, the move is expected to have wider repercussions because it shows China using its rare-earth supply chain as leverage. Rare-earth elements are essential for advanced weapons, semiconductors, electric vehicles, and other key industries, and China holds an overwhelming share of the global supply chain. If EU defense firms cooperate with Taiwan, they may face higher costs and supply disruptions.
The decision to include European companies in the sanctions list is also being read as a sign that China is raising the level of its response, especially as the U.S. expands military cooperation with allies under the banner of defending Taiwan. As supply-chain pressure that combines economics and security intensifies, the U.S.-China conflict is spreading more clearly across global industry.
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km@fnnews.com Kim Kyung-min Reporter