US joins EU in rejecting Beijing's peace proposal, sanctions more Chinese firms

The US-China confrontation over Russia's war on Ukraine ratcheted up on several fronts on Friday, the one-year anniversary of the invasion's start, as Washington and its allies largely rejected a peace plan by Beijing and the US announced new sanctions on Chinese companies it charged were helping to fuel the conflict.

The debate over China's peace proposal also carried over to a special meeting of the United Nations Security Council.

US National Security Adviser Jake Sullivan dismissed the 12-point peace proposal China released earlier on Friday, telling CNN that Beijing should have ended it after the first point, which calls for "respecting the sovereignty of all countries".

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Among its other elements, the plan calls for a ceasefire, which would freeze Russian troops in place on Ukrainian territory, and for an immediate end to all sanctions not endorsed by the UN Security Council, where Russia holds veto power.

Sullivan's rebuff was in line with that of European Commission President Ursula von der Leyen and German Chancellor Olaf Scholz, who implied that Beijing's proposal had not changed their view that China had taken Russia's side.

Eurasia Group analysts Clayton Allen and Anna Ashton said that China's proposal was biased towards Moscow - even if it was less hostile to Washington and its allies compared to the comments that Beijing's top diplomat Wang Yi had for US Secretary of State Antony Blinken in Germany last week.

"Although several of the 12 points revealed Chinese concerns over actions primarily associated with Russia, it continued to echo Russia's justifications for invasion and can largely be framed by Russia as supporting Moscow's positions," Allen and Ashton said in a research note.

"China's approach suggests that they are walking a diplomatic tightrope of strengthening ties to Russia - a key geostrategic ally and counterbalance to the West - while avoiding a position that is seen as openly hostile to Western aims," they added.

Asked whether US President Joe Biden's administration saw China's proposal as a "gimmick", National Security Council spokesman John Kirby echoed Sullivan's comment that the document should have stopped after the call to respect sovereignty. He declined to characterise it further.

In New York, in the UN Security Council on Friday, the US remained committed to a Ukrainian victory, while China put forward its plan.

Describing long-term diplomatic negotiations as the "only right way" to resolve the crisis, China's representative, Dai Bing, urged the international community to create platforms for Russia and Ukraine to hold talks without any preconditions.

"Bringing parties to the conflict back to the negotiating table is not going to be easy, but it is the first step toward a political solution", Dai, charge d'affaires at the Chinese Permanent Mission to the UN, said.

Blinken, though, warned that it was critical to ensure that Russia was not allowed to utilise any temporary "unconditional" ceasefire in fighting to "rest, rearm and relaunch".

"Council members should not be fooled by calls for a temporary or unconditional ceasefire," Blinken said.

"Russia will use any pause in fighting to consolidate control over the territories illegally seized and replenish its forces for further attacks," he added.

Voicing China's strong opposition to unilateral sanctions, Dai said that developing countries were paying a high price due to the war's impact on global supply chains, exacerbating food, energy and financial crises: "We hope that the relevant parties take responsible actions and stop abusing unilateral sanctions and long-arm jurisdiction".

US National Security Adviser Jake Sullivan with Ukrainian President Volodymyr Zelensky in Kyiv on Monday. Photo: Reuters alt=US National Security Adviser Jake Sullivan with Ukrainian President Volodymyr Zelensky in Kyiv on Monday. Photo: Reuters>

There was more unity among the Group of 7 industrialised nations, which also issued a strong condemnation of Russia's war on Friday.

Traditionally allied with Washington, the G7 pledged "unwavering support for Ukraine for as long as it takes" and called on Russia to "completely and unconditionally withdraw its troops from the entire internationally recognised territory of Ukraine".

In an apparent reference to China, Iran, North Korea and other countries that Washington accuses of assisting Russia economically or militarily, the group called on "third-countries or other international actors who seek to evade or undermine our measures to cease providing material support to Russia's war, or face severe costs.

"To deter this activity around the world, we are taking actions against third-country actors materially supporting Russia's war in Ukraine," the statement added.

Washington announced such deterrence earlier on Friday.

Building on sanctions announced last year on Chinese companies suspected of helping Russia, the US Commerce Department added five Chinese firms to its entity list: AOOK Technology Ltd; Beijing Ti-Tech Science and Technology Development Co; Beijing Yunze Technology Co; China HEAD Aerospace Technology Co; and Spacety Co.

The list also added two subsidiaries of China HEAD Aerospace Technology in France and the Netherlands, and an affiliate of Spacety in Luxembourg.

The department said that the additions were based on information that "these companies significantly contribute to Russia's military and/or defence industrial base and are involved in activities contrary to US national security and foreign policy interests".

The action, which also sanctioned nearly 80 Russian companies involved in the country's "defence-industrial sector and war effort", follows several warnings by Washington that Beijing would suffer "consequences" were it to supply weapons to Moscow.

Blinken has contended in a series of interviews this week that China is "strongly" considering providing lethal assistance to Russia. Beijing rejected the claim, accusing Washington of "spreading false information".

A Pentagon spokesperson acknowledged on Wednesday that the US has not yet seen China giving weapons or other lethal aid to Russia, but that Beijing had not yet taken that aid off the table.

Concerning the new sanctions, Alan Estevez, under secretary of commerce for industry and security, said on Friday that "as our export controls continue to bite, Putin and his cronies will become more desperate in seeking the means to sustain this illegal war".

"Today's package of rules shows that our commitment - and that of our allies - is not wavering, and that we will meet whatever Russia, Belarus, Iran, private firms such as those from China or anyone globally who seeks to support them can muster, with strong, coordinated action."

The additions to the trade blacklist were part of new, sweeping cross-department sanctions the US announced on Friday in its latest response to Russia's invasion of Ukraine.

In a separate expression of US support for Kyiv, Blinken announced US$10 billion in "energy assistance to support Ukrainians suffering from Russia's attacks" and monies to keep government functions running.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

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