To protect Europe's key semiconductor industry supply chains, the EU is considering adjusting sanctions measures against a Chinese enterprise.
According to a report by the Hong Kong English media The South China Morning Post on October 22, several people familiar with the matter revealed that during the high-level economic and trade talks between China and Europe held this month, a solution involving corporate export controls was discussed. The EU is considering removing the Hubei-based company Yusha Group from the sanctions list, while China is expected to lift export restrictions on the German company Siedler-Hofmann Material Company.
According to reports, Sindhauser is a supplier for the Dutch lithography machine giant ASML. Previously, China’s export control measures made it difficult for him to obtain key minerals such as rare earths, putting business operations under pressure.
This arrangement has not yet been finalized, but it has sparked discussions within the EU.
According to reports, Yusha Group is headquartered in Hubei. It mainly engages in textile manufacturing. In February 2025, it was listed on the EU’s sanctions list against Russia.
Another company discussed in this discussion is Senthorn, a German manufacturer of special materials. They produce materials for precision coating in the semiconductor industry and are part of ASML’s supply chain.
Asme is a globally leading advanced lithography machine enterprise with significant impact on the semiconductor manufacturing industry.
In July this year, China included Xindehauser on its export control list. Since then, the company’s access to Chinese rare earths and other critical minerals has been affected.
Earlier this month, Bloomberg reported that due to the relevant restrictions, Sindhauze may face the risk of collapse in the coming months.
According to sources quoted by The South China Morning Post, during the Sino-European economic and trade talks held in Beijing this month, the delegation led by EU Trade Commissioner Michael Barnevik received relevant solutions.
According to the relevant arrangements, the EU will consider adjusting the restrictive measures against Yu Sha Group. China is expected to lift export controls on Xindehauser accordingly, in order to alleviate the supply chain pressures faced by related enterprises.
However, there is still no consensus within the EU on this matter.
Sources familiar with the matter revealed that at the second group meeting of the European Union Permanent Representatives Committee held on Wednesday, some member states expressed reservations regarding the adjustment of existing sanctions measures.
Related discussions are expected to continue in the working group of EU Foreign Relations Advisers, and a final decision has not yet been made.
Regarding the above message, the European Union Commission declined to comment. The Chinese embassy in the European Union and related enterprises have not immediately responded to media requests for comment.
It is worth noting that the EU is considering adjusting its restrictive measures at a time when China-EU economic and trade relations are entering a stage of intensive negotiations.
On Wednesday, European Commission President Ursula von der Leyen spoke at the European Parliament, where she acknowledged the achievements made in recent talks between EU Trade Commissioner Michael Röschl and Chinese Ministry of Commerce Minister Wang Wentao.
She specifically mentioned that both parties have made progress in pushing some European companies to withdraw from China's export control lists.
According to sources familiar with the matter, this statement involves Sindherzoe.
However, it is not yet clear whether the restrictions imposed by China on this company have been completely lifted.
Reports indicate that this event reflects the real difficulties the European Union faces when enacting trade restrictions.
European companies still rely heavily on global supply chains in key industries such as semiconductors and automobiles. If trade tensions escalate, related countermeasures may affect the production and operations of European companies themselves.
Similar situations have occurred in the past.
In June this year, the EU temporarily lifted some restrictions on Yangzhou Yangjie Electronics, a Chinese semiconductor company, so that European automakers that rely on its products could fulfill their existing orders.
Meanwhile, the EU has not stopped planning more aggressive trade measures.
According to reports, the European Commission plans to introduce three new policies in December this year. These include the ‘Diversified EU’ initiative, which requires key industries to expand their supplier base; a ‘solidarity mechanism’ to compensate companies that suffer trade retaliation; and an ‘emergency cut-off switch’ that allows the EU to quickly restrict foreign companies from entering European markets.
"Among them, 'emergency cutoff switch' was viewed by some European policy makers as a crucial tool in dealing with future trade friction."
However, reports indicate that Europe's dependence on China for key minerals and other supply chain components also means that when it takes tough measures, it may face pressure from its own industry.
Regarding the EU's attempt to obtain economic and trade concessions through pressure, China has already made clear its position.
China's Ministry of Commerce said last Friday: "The EU should not hope to gain benefits through pressure, nor should it underestimate China's determination and ability to safeguard its own interests."
While continuously advancing economic and trade negotiations, how to properly handle trade differences and maintain the stability of the industrial chain and supply chain remains an important issue faced by both China and Europe.
