April 19, 2023
By Sharan Kaur Phillora
The US’ sanctions on Chinese firms for alleged involvement with Russia is a typical case of unilateral sanctions and illegal “long-arm jurisdiction,” China’s Ministry of Commerce (MOFCOM) said on Saturday, urging Washington to immediately correct its wrongdoings and stop unreasonable suppression of Chinese companies.
Here’s what we know:
The list released on Wednesday primarily targeted Russian billionaire businessman Alisher Usmanov. It is believed that Usmanov is extremely close to Russian President Vladimir Putin and Dmitry Medvedev, the former Russian president.
The Treasury Department accused him of having a “wide network of businesses in financial safe havens and family members through which to conduct financial transactions, enabling him to potentially circumvent sanctions”.
Reportedly, five firms based in mainland China and Hong Kong were put on the sanctions list – meaning they cannot trade with any US-based firms without receiving a special licence, which is highly unobtainable.
“It is a typical unilateral sanction and a form of ‘long-arm jurisdiction’ which seriously damages the legitimate rights and interests of enterprises and affects the security and stability of the global supply chain. China firmly opposes this,” read a statement released by the Chinese Commerce Ministry.
“The US should immediately correct its wrongdoing and stop its unreasonable suppression of Chinese companies. China will resolutely safeguard the legitimate rights and interests of Chinese companies,” it added.
Washington justified its decision to sanction the companies by saying they were suspected to be involved or “pose a significant risk of being or becoming involved in activities contrary to the national security or foreign policy interests of the United States”.
Apart from China, firms from Turkey and the UAE, which have been allegedly selling drones and other electronic gadgets to the Russian defence sector, were also slapped with sanctions.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.