EU mulls sanctions reprieve for Chinese fabric-maker accused of aiding Russia
Por Finbarr Bermingham — South China Morning Post – News feed
Advertisement China-EU relations China Exclusive EU 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
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Finbarr Bermingham in Brussels Published: 4:32am, 23 Oct 2026
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.
Yusha Group was blacklisted by the European Union in February 2025, three years after Russia launched its full-scale invasion of Ukraine. Select Voice Select Speed 0.8x 0.9x 1.0x 1.1x 1.2x 1.5x 1.75x 00:00 00:00 1x AI-generated voice