Sanctions from and against China determine everyday political and economic life between the People's Republic, Europe and the USA. All relevant news on sanctions against China is available from the Table.Briefings editorial team. Sanctions against China The dispute over sanctions against China dates back to 2018. At that time, Donald Trump, the former President of the United States, imposed punitive tariffs on imports from the People's Republic. This affected goods worth USD 50 billion. However, the trade dispute between Beijing and Washington escalated. Just one year later, Donald Trump had imposed punitive tariffs on goods worth USD 500 billion. The total import volume. As China only imported goods worth around USD 125 billion, the People's Republic was unable to respond adequately, with Trump's accusations forming the background to the dispute. He accused China of unfair trade practices. The punitive tariffs were intended to reduce the enormous trade deficit. However, there is also a geopolitical strategy behind this. The People's Republic wants to become an economic and political world power. The USA sees the world's second largest economy as an adversary. The EU Commission also described China as a "systemic rival" in March 2019. The country's aggressive economic diplomacy in particular has led to this assessment. China: escalation of the trade dispute The trade dispute between the US and China escalated in 2019, as Meng Wanzhou was arrested in Canada on Dec. 1, 2018. She is the daughter of Ren Zhengfei, the founder of Huawei, and CFO of the telecommunications group. She is accused of circumventing the American sanctions against Iran. Huawei is also accused of using its 5G technology for espionage.Donald Trump, the US president at the time, declared a national telecommunications emergency on May 15, 2019. This law allows the US government to ban business with companies from "adversarial" countries. In this case, China. The aim is to avoid "unacceptable risks" and guarantee the "safety of Americans", as Trump put it. How did Germany react to the trade dispute between the USA and China? Germany also reacted to the trade dispute between the USA and China. In particular to the accusations that Huawei was using its 5G technology for espionage. As a result, the German government passed the "Second Act to Increase the Security of Information Technology Systems". Behind the unwieldy name are additional hurdles for companies that want to participate in the expansion of 5G in Germany: Huawei was not excluded from the expansion of 5G technology in Germany in principle, but this made it considerably more difficult for the Chinese company to access the German market. In Europe, Huawei supplies Deutsche Telekom, Vodafone and Telefónica with antennas for WLAN broadband networks. Huawei has also modernized Deutsche Bahn's GSM-R mobile network. Differences between Germany and China But even apart from the problems with Huawei and the trade dispute between the USA and China, there are massive political and economic differences between Europe and Germany on the one hand and China on the other. Human rights violations in China dominate reporting in this country. In particular, the persecution of Uyghur minorities in Xinjiang, their forced labor (also for suppliers of German companies), the suppression of the democracy movement in Hong Kong, the censorship of the media and the threatening military gestures towards Taiwan are a constant point of contention, as is the unequal trade relationship. While Chinese companies benefit from the open market in Europe, European companies have to cope with massive restrictions and conditions in China. Compulsory technology transfer, various investment barriers and restricted market access are among the biggest difficulties. What is the relationship between Germany and China like? Despite these enormous political disagreements, trade relations between Europe and the People's Republic are very good. China is the EU's most important trading partner in terms of trade in goods alone. Excluding services, the volume of trade between China and Europe amounted to around EUR 586 billion in 2020. Exports to China accounted for EUR 202.5 billion and imports from the People's Republic for EUR 383.5 billion, making Germany by far the most important economic trading partner for China within the European Union. The trade volume between Germany and China amounted to around EUR 212.1 billion in 2020. In other words, more than a third of the European volume. Imports from China accounted for EUR 116.3 billion and exports to China for EUR 95.9 billion. EU sanctions against China In March 2021, the European Union adopted sanctions against China. The foreign ministers of the 27 member states want to take action against human rights violations in the People's Republic. With these measures, the EU is taking action against four Chinese who are said to be largely responsible for the oppression of the Uyghurs, a Muslim minority in the Xinjiang region, including Chen Mingguo, the director of the Xinjiang Public Security Bureau, as well as three representatives of the Xiangjing Party Committee. The institution has been placed on the EU sanctions list in its entirety. They are banned from entering the EU. In addition, all assets belonging to them or legal entities associated with them are frozen. Resources may also no longer be made available to them. China's sanctions against the EU In response to the EU sanctions against China, the Communist Party reacted immediately. It also imposed sanctions against four institutions and a total of ten people. In future, they will not be allowed to enter China or do business with companies from the country. The individuals include MEPs Reinhard Bütikofer (Greens) and Michael Gahler (CDU). The list also includes Uyghur researcher Adrian Zenz as well as the EU's Political and Security Committee and the German Mercator Institute for China Studies, while the government of the People's Republic has expressed its extreme displeasure at the EU sanctions against China. The Foreign Ministry in Beijing announced that the sanctions were "based on nothing but lies and disinformation". If they were not withdrawn, Beijing would "resolutely show further reactions". China's Anti-Sanctions Law In June 2021, China passed the Anti-Foreign Sanctions Law. China's Anti-Sanctions Law is a legal framework for responding to US or EU sanctions. The responses can affect both individuals and companies doing business in China. The Anti-Sanctions Law is a response to the ever-escalating trade dispute with the USA and the EU sanctions due to human rights violations. China's Anti-Sanctions Law specifies when and how Chinese authorities will intervene if sanctions are imposed against the People's Republic. The Anti-Sanctions Law supplements the existing sanctions against the EU and the USA and lists additional punitive measures. What does China's anti-sanctions law say? China's Anti-Sanctions Law contains a number of interesting and critical sections for foreign companies. Article three is of central importance. It states that individuals and organizations involved in "discriminatory measures against Chinese citizens" or "interference in China's internal affairs" can be punished. Article five of the Anti-Sanctions Law also states that this also applies to spouses and immediate family members of those affected. Anyone on the blacklist can be expelled from the country. Issuing a visa can also be problematic. Article twelve is also critical. It states that Chinese citizens and organizations have the right to sue individuals and organizations for damages if they are on the blacklist. Which people has China already punished? China's anti-sanctions law is just one of many measures with which the People's Republic is responding to the trade dispute with the USA, which has been ongoing since 2018, and the EU sanctions against China for human rights violations. Among the individuals against whom China has already imposed sanctions are US politicians Marco Rubio, Ted Cruz, Josh Hawley and Tom Cotton, as well as Reinhard Bütikofer (Greens) and Michael Gahler mentioned above, Canadian politician Michael Chong and members of the European Parliament's Human Rights Committee. European academics and NGOs such as Human Rights Watch, Merics, Freedom House and the National Endowment for Democracy are also affected. Which companies has China imposed sanctions on? The Chinese government has so far been very cautious about imposing sanctions on companies. So far, the Communist Party has only punished arms companies that have supplied Taiwan. These include Lockheed Martin, Boeing Defense and Raytheon. China's anti-sanctions law on the one hand, and the EU and US sanctions on the other, will accompany the economic and political relations between the major powers for a long time to come. The Table.Media editorial team provides all the relevant news on this topic.
Military links: US puts Alibaba, Baidu and BYD on blacklist
The Pentagon is adding more Chinese companies to its blacklist. They are alleged to support China’s military and defense industry.
By Ning Wang