Politicizing trade with sanctions is blinkered, futile and self-harming

The imposition of unilateral sanctions has never been a reasonable and viable tool to settle disputes or conflicts. Instead, used for political purposes, they only serve to aggravate the situation and do a disservice to the sound development of trade relations.

Yet, for some economies, sanctions have become a tool ready to hand as a DIY make-do for want of a more considered policy option. The European Union, Canada and the United Kingdom made this knee-jerk choice when they announced sanctions against individuals and entities, which they claim have supported the Russian military.

The EU announced that it has added 53 new entities to the list of those that it has identified as supporting the Russian military-industrial complex or engaged in sanctions circumvention, including 25 from China. Canada and the UK also imposed new sanctions against a number of entities and individuals including some from China.

Such unilateral sanctions are not in the least reasonable or warranted. Is there any reason for China and its neighbor Russia to stop doing business just because of the military conflict between Russia and Ukraine?

China has always upheld a just and objective position on the Ukraine crisis and worked for its political settlement. It has never provided lethal weapons to any party of the conflict and it exercises strict export control over dual-use articles. The scope and measures of China's export controls over drones are the most stringent worldwide. As a Chinese Foreign Ministry spokesperson said, China carries out normal economic and trade cooperation with Russia as it does with other countries, and this is "beyond reproach".

China has lodged serious protests against the illegal unilateral sanctions as there are no grounds for disrupting or affecting the normal exchanges and cooperation between Chinese and Russian businesses. It will take necessary measures to safeguard Chinese companies' lawful rights and interests.

It is wishful thinking for Canada, the EU and the UK to believe they can employ coercive means such as economic sanctions to exert pressure on China in the hope that the latter will change its stance to be in line with theirs. Given the fact that Washington is engaged in direct negotiations with Russia for peaceful settlement of the conflict, the EU, the UK and Canada doubling down on their economic coercion targeting Russia and continued commitment to provide military assistance to Ukraine will only prolong the conflict.

This is a far cry from what China has been doing for the peaceful settlement of the conflict. China does not do anything to add fuel to the flames. It is hopeful imagining that China would jump on the bandwagon of the EU, the UK and Canada to isolate Russia economically. It is not in the interest of China, and neither is it in the interest of global economic development and world peace.

For the settlement of the hostilities between Russia and Ukraine, or at least a ceasefire between the two countries, the EU, the UK and Canada should think twice about their actions that will only protract the conflict.

China attaches importance to the development of relations with the EU. China and the EU are each other's second-largest trading partner. The trade volume between both parties amounted to more than 5 trillion yuan ($689 billion) in 2024. But that does not mean that China will accept the unilateral sanctions the EU has imposed against Chinese companies.

China is also the second-largest trade partner of Canada and an important trade partner of the UK. The trade relations between the two countries and China are important for both economies. China remains committed to the development of sound trade relations with them. It is a mistake for them to politicize trade relations with China. China will certainly take countermeasures against the unilateral sanctions on its companies, which will undoubtedly do a disservice to the development of trade ties with them.

The sanctions being implemented by the Western economies are politically motivated and undermine the principles of international law. China believes that a solution to the Ukraine crisis and the establishment of a balanced, effective, and sustainable European security framework should be reached through dialogue, cooperation and consensus among all relevant parties, rather than through prejudiced punitive sanctions.

The rationality and constructiveness of its position have been validated by the recent momentum that has been generated that may herald an end to the conflict.