FX.co ★ China Bans Two EU Banks in Retaliation for Sanctions

China’s Ministry of Commerce announced on Wednesday its intention to swiftly implement retaliatory measures against two European Union banks subsequent to the EU’s inclusion of two Chinese financial institutions in its sanctions list related to Russia. As a consequence of these measures, Lithuania’s UAB Urbo Bankas and AB Mano Bankas will be prohibited from engaging in transactions or partnerships with entities and individuals within China, according to a statement from the ministry. This development highlights Beijing’s resistance to what it considers the extraterritorial imposition of sanctions and occurs amidst escalating trade and diplomatic tensions between China and the European Union.