Bloomberg: EU Negotiates Sanctions Swap with China to Rescue ASML Supplier Sindlhauser
Bloomberg reports the EU is negotiating with China to lift restrictions on an unnamed Chinese firm in exchange for Beijing freeing rare-earth exports to ASML supplier Sindlhauser, which faces bankruptcy.
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According to a Bloomberg report dated October 14, the European Union is in talks with China to lift trade restrictions on an unnamed Chinese company sanctioned under its 21st Russia sanctions package. In return, Beijing would remove export controls on Sindlhauser Materials GmbH, a German precision-manufacturing and advanced-coatings firm critical to ASML's supply chain.
China placed Sindlhauser and 13 other European companies on its export-control list in July, citing alleged dealings with Taiwan, in apparent retaliation for EU measures against Chinese firms accused of aiding Russia. The restrictions ban Chinese exporters from selling dual-use items, including rare earths, to Sindlhauser and prohibit third-party transfers. As the company relies almost entirely on Chinese inputs, it faces the risk of going out of business within months if the sanctions remain.
EU Commissioner for Trade and Economic Security Maroš Šefčovič discussed the potential delisting swap during his visit to Beijing. The EU is expected to make the first move, though any removal requires unanimous support from member states. Both sides also agreed to share more information and provide advance warning on future export restrictions. The incident highlights China's leverage over key segments of the global semiconductor supply chain essential to AI infrastructure.