The EU may postpone sanctions against a Chinese supplier of chips to Russia
The European Commission is considering a temporary postponement of sanctions against the Chinese semiconductor manufacturer Yangzhou Yangjie Electronic, which was previously added to the restrictive lists for supplying chips that, according to the EU, could have been used in Russian military equipment. The decision could give European companies a nine-month transition period to avoid production disruptions and find new suppliers. Reuters reports this, citing sources in the European Commission.
Officials in Brussels explain that Yangzhou Yangjie Electronic will remain under sanctions, but businesses in the EU may be temporarily allowed to continue working with it to avoid a severe blow to supply chains, particularly in the automotive industry, which already relies on a limited number of chip suppliers.
A European Commission spokesperson emphasized that the decision must be balanced and take into account both security risks and economic consequences. “Its products were found in drones and glide bombs used by Russian troops in Ukraine,” he noted, explaining the reasons for adding the company to the sanctions list.
At the same time, the European Commission stresses that the goal of the restrictions is to influence companies’ behavior while avoiding critical disruptions to the EU’s internal market. “The goal of our sanctions is to change behavior, and we are striving to find a balance to ensure they do not have a significant impact on the EU,” the spokesperson added.
The situation has been complicated by the fact that European automakers have already begun switching to this Chinese supplier following previous sanctions against other companies, and now risk being left without stable alternatives if the restrictions are imposed without a transition period.
To take effect, the European Commission’s proposal must be unanimously approved by all European Union countries, making the final decision open and dependent on political consensus within the bloc.
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