China has strongly opposed the possibility of new European Union sanctions targeting Chinese companies as Brussels moves forward with its proposed 21st sanctions package against Russia over the ongoing Ukraine conflict.

The response came after EU foreign policy chief Kaja Kallas indicated that the latest sanctions package could include measures against companies based in China, Türkiye, India and several other countries that the European Union believes may be helping Russia circumvent existing restrictions.

The development marks another point of tension between Beijing and Brussels as the European Union seeks to further tighten economic pressure on Moscow while expanding scrutiny of companies and entities operating outside Russia.

EU's 21st Sanctions Package Targets Russia's Financial and Energy Sectors

Earlier this week, the European Union unveiled its proposed 21st sanctions package against Russia, describing it as one of the most comprehensive rounds of restrictions since the start of the Ukraine conflict.

European Commission President Ursula von der Leyen said the bloc remains determined to weaken Russia's ability to finance its military operations.

"Brick by brick, we are collapsing the foundations of Russia's war economy," von der Leyen stated while presenting the new package.

According to EU officials, the sanctions aim to cut off financial resources that support Russia's military activities and prevent the circumvention of existing restrictions.

The package includes proposals to freeze the Russian oil price cap temporarily, impose asset freezes on nearly 90 banks, and introduce transaction bans on more than 30 financial institutions in Russia and third countries.

The European Union is also seeking to tighten restrictions on crypto-asset services, ban transactions involving 11 crypto platforms, and introduce additional sanctions on entities allegedly helping Russia bypass Western restrictions.

Largest Sanctions Expansion in More Than Two Years

European officials said the latest package contains more than 170 proposed listings targeting individuals and entities connected to Russia's war effort.

These measures come in addition to 81 listings expected to be approved by the EU Foreign Affairs Council, targeting Russia's shadow fleet, military-industrial complex, human rights violators and individuals accused of spreading pro-Kremlin propaganda.

Brussels has emphasized that the objective is to deprive Moscow of the financial resources needed to sustain military operations in Ukraine.

Shadow Fleet and Energy Revenue Under Pressure

A major focus of the sanctions package is Russia's energy sector, which remains one of the country's most important sources of revenue.

The EU plans to introduce new restrictions on the resale of liquefied natural gas (LNG) tankers to Russia and expand measures targeting Russia's so-called shadow fleet.

The proposed sanctions would add 30 new vessels to the blacklist while expanding criteria for vessel designations.

European authorities also warned that ships supplying or refueling sanctioned vessels could themselves become subject to penalties.

Additionally, transaction bans are being proposed against two Russian ports and four Russian airports.

Chinese, Indian and Other Foreign Companies Could Face Restrictions

One of the most significant elements of the proposed sanctions package involves companies located outside Russia.

The EU has proposed export control measures and restrictions affecting around 50 companies that it believes support Russia's military-industrial complex.

According to European officials, these entities are based in several countries, including China, Türkiye, Kyrgyzstan, Kazakhstan, the United Arab Emirates and India.

The sanctions package also includes more than 30 new designations connected to drone manufacturing and military production networks.

Brussels intends to restrict exports of additional strategic materials and technologies, including nickel powders, specialized metals and high-performance alloys that could be used in military manufacturing.

China Rejects EU Sanctions Threat

Responding to comments regarding potential sanctions on Chinese companies, Chinese Foreign Ministry spokesperson Lin Jian criticized the European Union's approach and reaffirmed Beijing's opposition to unilateral sanctions.

Lin Jian stated that China opposes what it describes as "illicit unilateral sanctions" that lack a basis in international law and are not authorized by the United Nations Security Council.

The Chinese spokesperson said Beijing has repeatedly communicated its concerns to European officials.

"China opposes illicit unilateral sanctions that have no basis in international law or the authorization of the UN Security Council," Lin said.

He added that China has lodged serious protests with the European Union on multiple occasions and has urged Brussels to correct what Beijing considers a wrongful approach and withdraw unilateral sanctions.

According to Lin, China will continue to closely monitor developments surrounding the proposed sanctions package.

"China will closely watch the developments and do what is necessary to firmly protect its legitimate rights and interests," he stated.

Growing Tensions Between Brussels and Beijing

The dispute highlights growing tensions between China and the European Union over the Ukraine conflict and the enforcement of sanctions against Russia.

While the EU argues that additional restrictions are necessary to prevent sanctions circumvention and reduce Russia's ability to fund military operations, China maintains that unilateral sanctions lacking UN authorization violate international norms.

The proposed measures have the potential to impact companies across multiple countries, increasing concerns about secondary sanctions and the broader economic implications of the West's efforts to isolate Russia.

As EU member states begin reviewing the proposed 21st sanctions package, attention is now turning to whether the bloc will ultimately approve restrictions on Chinese, Indian and other foreign companies and how affected countries may respond.

The coming weeks are expected to be critical as Brussels finalizes the details of what could become one of the European Union's most far-reaching sanctions packages against Russia and entities accused of supporting Moscow's war economy.