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EU-China trade war: Beijing turns the screws as Brussels tests limits of restraint

Latest sanctions suggest Chinese effort to ramp up pressure on Europe and strike fear into member states before crunch time in October

4-MIN READ4-MIN ListenFinbarr Berminghamin BrusselsPublished: 5:00pm, 31 Jul 2026Last Thursday, the European Union added 14 Chinese companies to its latest round of sanctions, accusing them of providing support for Russia’s war against Ukraine – but few of the names were recognisable to anyone outside narrow trading and compliance circles.Officials were taken aback less than 24 hours later, when Beijing – which had been notified of the ragtag group of traders and freight forwarders to be listed by the EU as far back as June – fired back ferociously. Unlike the long notice afforded to their own diplomats, China gave Brussels just a one-hour warning, according to people familiar with the exchange.Europe’s own listings had been carefully calibrated, intentionally omitting major Chinese actors to ensure its own member states would support the package amid fears of retaliation. Beijing, on the other hand, went for the jugular.

The firms named are also effectively cut off from receiving those same Chinese-origin materials via overseas suppliers, an extraterritorial reach that does not exist in the EU’s own measures, and which could send a chilling effect through their supply chains, Brussels officials fear.

“They have threatened for years but until now they barked a lot and didn’t bite. This time they didn’t bark much, but they bit,” one senior official said.

Read original at South China Morning Post

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