The European Union is planning to impose sanctions on Chinese companies amid increasingly hostile relations between the two powers.
According to a report by Politico, four Chinese firms will be subject to legal restrictions and penalties under a forthcoming sanctions package, with Eurocrats set to justify the trade action by claiming they are working with Russian firms.
A further nice firms located in the United Arab Emirates, Turkey and Azerbaijan are also set to be hit with similar sanctions, with the report indicating that they could recieve final approval from the European Council as early as June 15.
Reporters from Politico claim they have knowledge of exactly which firms are set to be penalised, but have “decided not to publish the names of the firms involved”.
The publication is traditionally viewed as being closely linked to the European Commission, with rival outlets frequently accusing the outlet of using its access to top Eurocrats for financial gain.
China has yet to formally respond to the suggestion that more of its companies could soon be sanctioned by Europe, though officials have in recent weeks repeatedly complained about growing EU protectionism.
Speaking on June 3, Chinese Ministry of Foreign Affairs spokeswoman Mao Ning criticised the bloc’s “digital sovereignty” package.
She urged the bloc to “abide by basic market economy principles such as free trade, fair competition, openness and cooperation” and “refrain from resorting to protectionist measures”.
The previous imposition of penalties on Chinese electric vehicle manufacturers received a more harshly worded response, and while the row was later resolved, a subsequent fine against Temu under the Digital Services Act has once again heightened tensions.
Speaking on the €200 million penalty, the Chinese Chamber of Commerce to the EU — which is backed by the Chinese government — questioned the proportionality of the record-breaking fine.
“The Chamber has consistently supported the lawful and compliant operations of Chinese enterprises overseas,” a press release from the body reads.
“At the same time, excessive enforcement may ultimately translate into higher import costs and inflationary pressures in Europe, to the detriment of consumers’ interests.”