China Imposes New Trade Sanctions Against Russia

They concern the supply of equipment and chemicals.

China will make it more difficult for Russian businesses to purchase equipment, machinery and chemicals in the country. An expanded list of dual-use goods subject to export control will come into force in China on December 1, importers and foreign trade consultants told Izvestia.

In particular, the updated list will include IT equipment, including servers and components, which are already difficult to bring to Russia, says Alexey Razumovsky, Commercial Director of Impaya Rus.

Argon gas for welding will also be subject to restrictions, notes Ekaterina Kizevich, CEO of Atvira. According to her, at the moment, the volumes that were previously agreed upon and paid for are being shipped, and contracts for future supplies have not yet been concluded.

According to the new rules, a 25% tax will be levied on Chinese companies that export dual-use products to Russia, Kizevich says. At the same time, there is no information about this in official statements from the Chinese side.

At the same time, importing goods to Russia through third countries will also be problematic: China's export control applies to all deliveries abroad, notes Pavel Kuznetsov, Vice President of the National Coordination Center for International Business Cooperation. According to him, now Chinese exporters, in addition to a special license, will have to provide information about the final recipient of the goods. This will significantly worsen the situation with payments, believes Alexey Poroshin, CEO of JSC “First Group”.

The new rules may look like confirmation of the fact that the United States was able to influence China, and now the export of important products to Russia will become significantly more difficult, if not stop altogether, says Kuznetsov. Thus, according to him, China is showing the United States that it prevents the illegal use of sensitive technologies and materials for non-peaceful purposes.

Previously, Chinese companies began to refuse direct deliveries of their products to Russia and began to demand that imports be redirected to third countries. This concerned goods that were included in the stop lists of codes for foreign economic activity, such as electronics.

Before this, Russia's trade with China was complicated by the refusal of Chinese banks to accept payments from Russian companies. This happened after the introduction of the 12th package of EU sanctions against Russia and the decree of US President Joe Biden, which allowed the US Treasury Department to impose restrictions on third-country banks for cooperation and assistance to the Russian military-industrial complex, as well as sanctioned companies.

At the same time, according to the General Administration of Customs of the PRC, in January-June of this year, trade turnover between China and Russia increased by 1.6% compared to the same period in 2023 and amounted to $136.67 billion.

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