Beijing’s economic clout ties Europe’s hands to punish Russia, top diplomat admits

The European Union’s extensive economic interdependence with China is limiting its ability to exert meaningful pressure on Beijing over its ongoing support for Russia’s war in Ukraine, the bloc’s top diplomat warned.

Speaking at a Bloomberg event in Brussels, EU High Representative for Foreign Affairs Kaja Kallas said China “might also hurt you, and that’s the problem. If you’re not willing to pay the price that they are going to impose on you, then it’s hard to act.”

Her remarks come as the EU intensifies efforts to compel Beijing to curb assistance that enables Moscow to circumvent wartime sanctions. In October, the bloc imposed restrictive measures on several Chinese companies accused of helping Russia procure sanctioned goods.

Without China’s backing, Kallas argued, the conflict in Ukraine would have effectively ended. “And that’s why, you know, we have taken this so far,” she said.

However, she cautioned that any serious attempt to target or sanction China would inevitably come at an economic cost for Europe, given Beijing’s dominance across critical supply chains and its continued importance as a major export market. “China has been very clever in really growing their geopolitical influence,” Kallas noted.

Recent developments have underscored Europe’s vulnerability. Beijing’s new restrictions on rare earth mineral shipments—essential for manufacturing everything from electric vehicle batteries to defence technologies—have forced European firms to secure import permits. Meanwhile, several European carmakers faced looming semiconductor shortages after Nexperia, a Dutch-based but Chinese-owned chipmaker, abruptly suspended deliveries amid a political dispute.

Kallas urged Europe and its partners to coordinate their response, stressing that the United States, the United Kingdom, Australia, Japan, and others are similarly affected by China’s strategic economic behavior. “The problem is that we are not acting united here,” she said.

By Vafa Guliyeva