Japan’s Ministry of Foreign Affairs announced on Friday that the Japanese government has decided to freeze assets or prohibit exports to 11 entities from five countries, including China, in response to the Russian invasion of Ukraine. Among these entities, seven are companies located in China or Hong Kong.
This marks the first time Japan has imposed sanctions on entities assisting Russia through China. Apart from China, entities from India, the UAE, Uzbekistan, and Kazakhstan were also targeted with sanctions.
In addition to the existing sanctions, the Cabinet meeting determined to impose further sanctions on Russia, freezing the assets of 10 individuals, including the Central Election Commission of Russia, and 27 entities.
The list provided by the Japanese Ministry of Foreign Affairs includes seven Chinese and Hong Kong companies subject to sanctions, such as Asia Pacific Links Ltd, Tordan Industry Ltd, and Alpha Trading Investments Ltd in Hong Kong; Yilufa Technology Co., Wuligao Creative Technology Co., Bigrace Trading Co. in Shenzhen; and Ousai Technology Co. in Guangzhou.
These sanctions align with those previously enforced by the United States and the European Union, prohibiting Japanese companies from exporting to the targeted entities.
American officials believe that the Chinese Communist Party is supporting Russia in its war in Ukraine by providing Moscow with drone and missile technology, among other forms of assistance.
The conflict between Russia and Ukraine has been ongoing for nearly two years and four months, representing Russia’s largest military operation since the fall of the Soviet Union.
Despite facing extensive sanctions from the West, Russia has continued its attack on Ukraine, partly due to China’s ongoing export of machinery, microelectronics, and other dual-use military technology that enables Russia to sustain its weapon production. Trade between China and Russia surged to a record $240 billion in 2023.
In late May, U.S. Secretary of State Blinken stated that 70% of the machine tools imported by Russia come from China, and 90% of its microelectronics products are also sourced from China.
Last week, the U.S. expanded its sanctions against Russia, taking action not only against Chinese companies selling semiconductors to Moscow but also significantly expanding secondary sanctions on Russia.
Any foreign financial institutions engaging in transactions with sanctioned Russian entities will be considered as directly cooperating with Russia’s military-industrial complex.
To secure bilateral trade and payment channels, China recently loosened regulations for border small banks to allow Russian enterprises to open accounts. Since these banks have limited or even nonexistent business in Western countries, they can temporarily evade U.S. sanctions. However, this move could eventually lead to some Chinese financial companies facing sanctions.