China Retaliates: EU Banks Cut Off Amid Sanctions Showdown

China has implemented countermeasures against two EU banks in retaliation for the EU's sanctions on Chinese financial institutions related to Russia. Effective immediately, Lithuania's UAB Urbo Bankas and AB Mano Bankas are barred from operating with Chinese entities. China urges the EU to rectify their actions to preserve economic relations.

China has imposed punitive measures on two European Union banks in response to sanctions placed on Chinese financial operations associated with Russia, announced the commerce ministry on Wednesday. Effective immediately, the Lithuanian banks UAB Urbo Bankas and AB Mano Bankas are prohibited from engaging in transactions with Chinese individuals or organizations.

The ministry issued an appeal to the EU, urging the bloc to value the longstanding cooperative relationship in the fields of economy, trade, and finance, while also demanding the EU adjust its stance to prevent further deterioration of China-EU relations.

This development comes after the EU sanctioned Heihe Rural Commercial Bank and Heilongjiang Suifenhe Rural Commercial Bank, claiming they were linked to Russia. Relations between China and the EU have grown tense, and recent summits have underscored a challenging phase in trade diplomacy while also addressing geopolitical issues such as Russia's conflict in Ukraine.