ExclusiveEU mulls sanctions reprieve for Chinese fabric-maker accused of aiding Russia
Beijing offers to remove restrictions on a German supplier to chipmaking giant ASML in exchange for the EU delisting Chinese firm Yusha
Diplomats from the EU’s 27 member states were pressured this week to lift sanctions on Yusha Group, a Chinese textiles manufacturer accused of selling sensitive European technology to Russian buyers.
In exchange, Beijing has pledged that the company will refrain from shipping banned items to Russian military-linked buyers. It will also remove German company Sindlhauser Materials from its own export controls list, according to multiple sources familiar with the affair.
The unusual quid pro quo – the product of high-wire negotiations at the top level of EU and Chinese politics – is designed to protect the supply chain of Europe’s most valuable technology company, Dutch-based ASML, of which Sindlhauser is a reported supplier.
