China Imposes Export Restrictions on Tatra and Rheinmetall in Response to EU Sanctions Against Russia

China has banned the export of dual-use goods to 14 European entities. Specifically, restrictions were imposed on defense giant Rheinmetall and the Czech company Tatra Trucks in response to the EU’s 21st package of sanctions against Russia.

The decision was announced by the Chinese Ministry of Commerce (MOFCOM).

The ministry stated that the new restrictions were a result of the European Union’s addition of 14 companies from mainland China and Hong Kong to its sanctions list.

Foreign organizations and individuals are also prohibited from transferring or supplying dual-use goods of Chinese origin to these companies. However, in exceptional cases, Chinese exporters may apply for permission to make such shipments.

European Commission spokesperson Paula Pinho stated in response that the European Union is analyzing China’s new measures and will consult with the member states and companies affected by them.

A spokesperson for Tatra Trucks stated that this measure will have no practical impact on the company. Meanwhile, Rheinmetall has not yet issued a public response.

“We do not use components or technologies supplied by China that are subject to these export restrictions in the production of our vehicles,” — stated Tatra Trucks spokesperson Andrej Čírtek.

Therefore, the company does not expect this decision to affect production, supply chains, or the fulfillment of obligations to customers in any way.

Among the 14 entities against which Beijing imposed restrictions are the Italian electric motor manufacturer Lafert Group and the Polish technology company VIGO Photonics S.A.

The list also includes the Dutch shipbuilding and technology company Royal IHC, which specializes in building vessels for the extractive industry, dredging operations, and marine infrastructure.

The Ukrainian Armed Forces extensively use Tatra Trucks products, especially heavy all-wheel-drive trucks and specialized wheeled chassis. In particular, Tatra chassis serve as the base for the launchers of the Neptune coastal missile system, the 220 mm Bureviy multiple rocket launch system, and some versions of the 155 mm Bohdana self-propelled howitzer. In addition, Ukraine has received a significant amount of military equipment based on these trucks as part of military aid.

The Ukrainian Armed Forces also use a wide range of Rheinmetall products: Marder 1A3 infantry fighting vehicles, Skynex anti-aircraft artillery systems, and Caracal tactical vehicles. The company also supplies Ukraine with various types of ammunition, including 35 mm rounds for Gepard self-propelled anti-aircraft guns and 155 mm artillery rounds.