ADMIN
- China faces the prospect of more G7 sanctions.
- G7 accuses Ukraine of arming Russia.
- It is becoming increasingly difficult for China to balance support for Russia with its European trade ties.
NATO Secretary General Jens Stoltenberg warned China this week that it will face tough choices if it continues to support Russia's aggression in Ukraine.
“Publicly, President Xi has tried to create the impression that he is backing down in this conflict to avoid sanctions and maintain trade flows,” Stoltenberg said. said.
“But the reality is that China is fueling the biggest armed conflict in Europe since World War II.
At the same time, he wants to maintain good relations with the West.
“Well, Beijing can't have it both ways. At some point, and if China doesn't change course, allies will have to impose a cost.”
A strict position
The comments are part of a tough new stance by the US and its allies on China's accusations that it supplies Russia with key dual-use goods to fuel the Kremlin's war machine.
The US believes that China has supplied Russia with equipment such as chips and integrated circuits, which could be used to make weapons. In response, China has said it is not a party to the Ukraine war and should not interfere in trade between China and Russia.
At the G7 summit last weekend, leaders unequivocally signaled their growing frustration with China in a joint statement.
“China's ongoing support for Russia's defense industrial base is enabling Russia to maintain its illegal war in Ukraine and has significant and broad-based security implications,” said leaders of several of the world's major advanced economies.
It came days after the European Commission told Chinese carmakers it would temporarily impose tariffs of up to 38% on imported Chinese electric cars from next month.
And in April and May, the United States imposed new sanctions on Chinese banks and companies accused of supplying goods and services to Russia's military.
Shi's balancing act
Analysts say, China performing a balancing act. It is supporting a Russian offensive to undermine US global power and seeks to maintain trade ties with Europe on which its economy depends.
The United States has long pressured its European allies to adopt a tougher stance toward Beijing than its own.
But they have so far hesitated. While many maintain close economic ties with China, European economic giant Germany has long relied on China's manufacturing power for goods such as cars and electronic devices.
But there were signs at the G7 that could be changing, and European leaders are growing increasingly leery of China.
In the statement, the members said they were willing to further punish Beijing for its support of Russia.
“We will continue to take action against actors in China and third countries who materially support Russia's war machine, including through financial institutions consistent with our legal system.”
China-Europe tensions are rising
It's not just China's support for Russia that seems to be focusing European minds on its potential threat.
In recent months, authorities in Germany and the UK have arrested people accused of spying for China, and the European Union has accused Beijing of flooding the market with cheap electronic cars.
China has sought to exploit divisions in Europe, with Xi visiting Hungary and Serbia in May after meeting French President Emmanuel Macron. Both have taken a critical stance toward Ukraine and appear eager to do more business with China, defying EU policy. And China also seems keen to drive a wedge between European countries and the United States.
But China's efforts to rebalance seem increasingly difficult to sustain.
A person familiar with the G7 talks said this information financial bar: “The era of brazenness towards Beijing is now undoubtedly over and China has to be blamed for that, honestly.”
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