China Risks Getting Snarled in Web of Russia Sanctions
In a legal gray area, Chinese companies will have to be careful to avoid getting snagged.
The risk of secondary sanctions on Chinese companies is a potential risk for investors.
Photographer: Xavi Torrent/Getty Images EuropeIt’s a future investors in China must learn to live with: The expanding list of Chinese companies subject to U.S. sanctions or procurement controls. As the U.S. and European Union impose sweeping economic penalties on Russia over its invasion of Ukraine, China Inc. can easily become collateral damage, too.
The U.S. government has already put Beijing on notice. U.S. Secretary of Commerce Gina Raimondo warned that Chinese companies wanting to buy American equipment and software would be cut off if they supplied chips and other advanced technology to Russia. Nearly one-third of Russia’s chip imports come from China.