Deputy U.S. Treasury Secretary Wally Adeyemo emphasized that Chinese firms must choose between conducting business with Western economies or providing dual-use goods to Russia. Speaking in Berlin on Friday, Adeyemo stressed the importance of making it clear to Chinese companies that their actions will have significant consequences.
"Chinese firms can either do business in our economies or they can equip Russia's war machinery with dual-use goods. They can't continue to do both," Adeyemo asserted. He highlighted the unified stance of the U.S. and the European Union, underscoring that both are prepared to employ sanctions and export controls to enforce this choice.
The warning comes as the Biden administration intensifies its efforts to curtail China's support for Russia amidst the ongoing conflict in Ukraine. In December, President Joe Biden issued an executive order threatening sanctions against financial institutions aiding Moscow in evading Western sanctions. This latest move by Adeyemo aims to build on that directive, signaling a continued hardline approach.
Adeyemo revealed that Russia imported $5.2 billion worth of sensitive, dual-use goods from China-based suppliers last year. These goods, which have both civilian and military applications, pose a significant threat to European national security if they continue to bolster Russia's military capabilities.
"Let's make clear to Chinese companies that we are all prepared to use our sanctions and export controls to hold them accountable," Adeyemo reiterated. He warned that failing to dissuade China from this trade could embolden Russian President Vladimir Putin in his challenge against NATO.
Adeyemo's remarks were echoed by other high-ranking U.S. officials. Earlier in the week, U.S. Deputy Secretary of State Kurt Campbell accused China of supporting Russia's war in Ukraine, warning that Beijing could face further sanctions from the United States and NATO allies. Similarly, White House Deputy National Security Adviser for International Economics Daleep Singh indicated that the U.S. and its partners are ready to use sanctions and export controls to prevent any trade between China and Russia that threatens their security.
"Many of the goods from coalition countries still being found in Russian military equipment are largely being transshipped through China," Adeyemo pointed out, highlighting the ongoing issue of dual-use goods reaching Russia through indirect channels.
