China Turns Tables on US Over Russia-Ukraine War Sanctions

Beijing has responded to U.S. sanctions on Chinese companies accused of aiding Russia's war against Ukraine. An analyst told Newsweek this signals that China's "gloves are coming off."

On May 22, the Chinese Foreign Ministry announced sanctions on 10 business executives and a dozen U.S. entities connected to the defense sector, including Raytheon, General Dynamics, and Lockheed Martin. Earlier in May, the Biden administration had sanctioned hundreds of firms, including 20 based in China, for allegedly supplying Russia's military-industrial base.

These new Chinese sanctions, which freeze any assets their targets may have in China, are largely symbolic due to U.S. laws that already prohibit the sale of military technology to China and other adversaries. The Chinese Foreign Ministry criticized the U.S., saying it had "ignored China's objective and fair position and constructive role in the Ukraine crisis" and accused Washington of "indiscriminately imposing illegal unilateral sanctions" and "engaging in unilateral bullying and economic coercion."

The ministry also condemned the U.S. for its ongoing arms sales to Taiwan, which China considers its territory. Although the U.S. does not officially recognize Taiwan, it is committed to supporting the island's self-defense under the 1979 Taiwan Relations Act.

Jonathan Ward, a senior fellow at the Hudson Institute, said sanctioning U.S. aerospace and defense firms has become a standard response for China. While these sanctions may seem insignificant for American defense corporations without business in China, Beijing has escalated the situation by targeting Boeing and General Dynamics, which have substantial operations in China through Boeing's commercial sales and General Dynamics' subsidiary, Gulfstream Aerospace.

These new measures come shortly after China imposed sanctions on three other U.S. firms, including Boeing's defense division. Boeing is heavily invested in China through its commercial plane sales, although these are not currently affected by the sanctions.

Ward predicts that as geopolitical tensions rise, Beijing will further pressure foreign companies to "choose between American national security interests and China's own." He warned, "The gloves are coming off, and Western businesses should understand just how hostile the China market is likely to become in the near future."

Additionally, China's Commerce Ministry launched an anti-dumping investigation against U.S., Japanese, Taiwanese, and European Union producers of industrial plastic. This probe follows EU investigations into alleged Chinese dumping and tariffs imposed by President Joe Biden on various Chinese exports.