China punishes the “unreliable”: 14 foreign companies under Beijing’s sanctions
9 October 15:12
On Thursday, October 9, China’s Ministry of Commerce announced that 14 foreign companies have been added to the so-called “list of unreliable organizations,” "Komersant Ukrainian" reports.
- The Chinese government said the decision was made “to protect national sovereignty, security and development interests.”
- From now on, these companies will not be able to do business with China, including in the field of investment and trade.
- Beijing has also banned any Chinese enterprises and citizens from cooperating with these entities.
Who is on the blacklist?
Among the companies that have been subject to Chinese sanctions:
- BAE Systems – one of the world’s largest corporations for the production of military equipment (UK).
- The Halifax International Security Forum (Canada) is an influential platform for political and military discussions.
- A number of American companies that have supplied technology to combat drones used by Taiwan.
What are the consequences?
For the companies on the blacklist, this means
- a ban on imports and exports to China;
- a ban on investments in China;
- loss of any opportunities for cooperation with Chinese partners.
In fact, they find themselves cut off from the world’s second largest economy.
Why now?
This decision coincides with another move by China:
- on October 9, Beijing announced tighter controls over the export of rare earth elements.
- The ban applies not only to raw materials but also to processing technologies, which will hit foreign defense companies.
Thus, Beijing is simultaneously:
- restricts access to critical resources;
- imposes sanctions on companies that cooperate with Taiwan or Western military alliances.
Economy versus geopolitics
- China has been maintaining alist of unreliable organizations since 2019 as a response to US trade restrictions.
- Washington and its allies have been consistently blocking Chinese companies, including Huawei and microchip makers.
- Now, Beijing is responding in kind – defense companies that cooperate with Taiwan are being sanctioned.
What analysts expect
- tensions between China and the West in the technology and defense sectors will only grow;
- companies working in the field of drones, defense technologies, and microelectronics risk becoming Beijing’s next targets;
- for Taiwan, this means even more difficult conditions for the supply of foreign technologies.
As a reminder, in 2023-2025, the United States, Japan, and the EU have repeatedly restricted China’s access to chips and advanced technologies.
In response, China has imposed restrictions on the export of gallium, germanium, graphite, and other rare earth materials critical to the production of electronics and weapons.
Beijing’s latest move is another link in the chain of the “technological cold war” between China and the West.
