Germany accuses China of producing military goods for Russian army for the first time. Possible sanctions await Beijing, and the reason is Trump´s new tenure in the white house.

For the first time, Germany is accusing China of supporting Russia in their war against Ukraine, as Brussels and Berlin are losing patience with Beijing. German Foreign Minister, Annalena Baerbock, stated in a meeting with EU counterparts in Brussels that this must and will have consequences. Baerbock added that Putin´s aggression against Ukraine is a threat to the whole EU and is considered an attack on freedom in Europe. Consequently, the EU will most likely impose sanctions on China, sanctions that the newly appointed US president, Donald Trump, will support.

Trump is planning to imply a gigantic 60% tariff on all Chinese imports including drones, and a 10% on EU imports. Rumours from Brussels say that Trump and the EU might agree on a deal that EU will support the US in its trade war against China in return of backing down from Trump´s threats to stop the US aid to Ukraine. The 10% tariffs might be a part of the deal as well.

The drone market is also affected in this situation, as the Europen External Action Service (EEAS) is investigating evidence of drone production in China, drones that are sent to Russia to support them in their conflict against Ukraine.          

Beijing is helping Moscow dodge EU sanctions

The EU is working hard to investigate the cooperation between China and Russia. Speculations claim that China has been providing the Russian army with equipment, speculations that China keeps denying. Kaja Kallas, the designated EU High Representative for Foreign Affairs and Security Policy, complained before EU Parliament members that the `structural imbalance between China and the EU is affecting the internal market´.

From the Chinese side, China does not fear the EU sanctions, as Brussels considers that Beijing supplies Moscow with goods that can be used in military and for civilian use, targeting two birds with one stone.

The EU is heavily dependent on Chinese products. The member states must examine the sanctions thoroughly, especially Germany. The German government is cautious with dealing with Beijing. This was obvious in their vote against imposing tariffs on Chinese electric cars.

Ursula von der Leyen, EU Commission President, suggests reducing dependence on China and Russia, and diversify supply chains. Some EU members´ dependency on Russian energy supplies before the Russia-Ukraine war is a clear sign that the EU should stop this dependency on overpowering trading sides.

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