China slams EU banking sanctions as tensions rise ahead of key summit

Beijing has called on the European Union to “immediately cease its wrong practice” of sanctioning two Chinese banks, vowing to take action to defend the interests of Chinese companies just days ahead of a key leaders’ summit.

“China expresses strong dissatisfaction and resolute opposition to this move,” China’s Ministry of Commerce (Mofcom) said in a statement on Monday.

“China will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies and financial institutions.”

On Friday, in its latest package of measures designed to hobble Russia’s war machine, the EU announced sanctions on two small Chinese banks from cities close to China’s border with Russia: Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank.

This came as both sides prepared for a highly anticipated leaders’ summit in Beijing on Thursday, which will be chaired by European Commission President Ursula von der Leyen and European Council President Antonio Costa, as well as Chinese Premier Li Qiang, according to China’s Ministry of Foreign Affairs (MOFA). President Xi Jinping will also meet von der Leyen and Costa during their stay in Beijing, MOFA said.

Beijing had lobbied intensively behind the scenes to try and convince Brussels not to keep the two banks in its sanctions package, according to sources familiar with the exchanges.

South China Morning Post