Yellen Warns Chinese Firms Over Support for Russia Amid Ukraine Conflict

In a recent virtual meeting, U.S. Treasury Secretary Janet Yellen cautioned Chinese businesses about the potential severe repercussions they may face if they provide any material assistance to Russia in its ongoing conflict with Ukraine. This warning comes amid ongoing accusations from Washington regarding China's alleged provision of dual-use technologies that could enhance Russia's military capabilities, a claim that Beijing has consistently denied.

The video call, which also included Chinese Vice Premier He Lifeng, was part of Yellen's broader efforts to manage the economic relations between the two nations responsibly. During the discussion, Yellen emphasized the significant consequences that could arise for companies, including those based in China, if they choose to support Russia's military endeavors.

This isn't the first time U.S. officials have raised this issue. In April, Secretary of State Antony Blinken mentioned that China had continued to supply materials that support Russia's defense industrial base. The recent talks also touched upon concerns regarding China's non-market policies and alleged malicious cyber activities.

In response, the Chinese government conveyed its worries about U.S. economic and trade restrictions, characterizing the meeting as candid and constructive. However, Chinese officials did not clarify their stance regarding the allegations of military support to Russia.

Historically, Washington has accused China of supplying dual-use items -- such as semiconductors and drone technologies -- which could be utilized for military purposes in the Ukraine conflict. As a response to these allegations, the U.S. has imposed targeted sanctions on Chinese entities and individuals involved in these transactions, citing violations of international sanctions.

On its part, China has strongly denied the allegations of providing military-related dual-use technology to Russia. Chinese officials assert that the nation does not supply weapons to any parties involved in the conflict and maintains strict controls over the export of dual-use items.

Recently, China implemented new export control regulations on dual-use items, effective from December 1, 2024, aimed at enhancing transparency and standardization in the export of goods that can be used for both civilian and military purposes.