Trump imposes fresh military sanction, China, Russia warn of consequences

The Trump administration imposed sanctions on the Chinese military on Thursday for buying fighter jets and missile systems from Russia, in breach of a sweeping US sanctions law punishing Moscow for meddling in the 2016 US election.

In Beijing, the Chinese government expressed anger and demanded the sanctions be withdrawn.

The US State Department said it would immediately impose sanctions on China’s Equipment Development Department (EDD), the military branch responsible for weapons and equipment, and its director, Li Shangfu, for engaging in “significant transactions” with Rosoboronexport, Russia’s main arms exporter.

The sanctions are related to China’s purchase of 10 SU-35 combat aircraft in 2017 and S-400 surface-to-air missile system-related equipment in 2018, the State Department said.

They block the Chinese agency, and Li, from applying for export licenses and participating in the US financial system.

It also adds them to the Treasury Department’s list of specially designated individuals with whom Americans are barred from doing business.

The US also blacklisted another 33 people and entities associated with the Russian military and intelligence, adding them to a list under the 2017 law, known as the Countering America’s Adversaries Through Sanctions Act, or CAATSA.

CAATSA also seeks to punish Russia for its aggression in Ukraine and involvement in Syria’s civil war.

“China expresses strong indignation at these unreasonable actions by the US side and has already lodged stern representations,” Chinese Foreign Ministry spokesman Geng Shuang told reporters in Beijing, adding the moved seriously harmed bilateral relations and military ties.

“We strongly urge the US side to immediately correct the mistake and rescind the so-called sanctions, otherwise the US side will necessarily bear responsibility for the consequences,” he said, without giving details.

China has “normal” military exchanges and cooperation with Russia, aimed at protecting regional peace and stability, which is not against international law or aimed at any third party, Geng added.

China will continue to work with Russia to promote strategic cooperation at an even higher level, he said.

Doing significant business with anyone on the US blacklist can trigger sanctions like those imposed on China.

Some of those added to the list, which now contains 72 names, were indicted in connection with Russian interference in the 2016 US election, a US official said.

President Donald Trump on Thursday issued an executive order intended to facilitate implementation of the sanctions.

A federal special counsel is leading a criminal investigation of Russian interference in the US election, and any possible cooperation with Trump’s presidential campaign.

Trump has insisted there was no collusion with Russia. Moscow denies any effort to meddle in US politics.

AIMED AT MOSCOW - OR BEIJING?

One US administration official, who briefed reporters on condition of anonymity, said the sanctions imposed on the Chinese agency were aimed at Moscow, not Beijing or its military, despite an escalating trade war between the United States and China.

“The ultimate target of these sanctions is Russia. CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country,” the official told reporters on a conference call.

“They are instead aimed at imposing costs upon Russia in response to its malign activities,” the official said.

In Moscow, Russian member of parliament Franz Klintsevich said the sanctions would not affect the S-400 and SU-35 deals.

“I am sure that these contracts will be executed in line with the schedule,” Klintsevich was quoted as saying by Russia’s Interfax news agency. “The possession of this military equipment is very important for China.”

Security analysts in Asia said the move was largely symbolic and would only push Moscow and Beijing closer together.

“The imposition of US sanctions will have zero impact on Russian arms sales to China,” said Ian Storey, of Singapore’s ISEAS Yusof Ishak Institute.

“Both countries are opposed to what they see as US bullying and these kind of actions will just push Beijing and Moscow even closer together,” he said, adding that Moscow needed Chinese money and Beijing wanted advanced military technology.

Collin Koh, a security analyst at Singapore’s S Rajaratnam School of International Studies, said the sanctions would do little to counter the evolving research and development relationship between China and Russia.

China relies less on large big-ticket purchases from Russia, but Chinese defense industries are seeking expertise from Russia and former-Soviet states to plug knowledge gaps, he said.

The Trump administration is pursuing strategies to clamp down on China and faces growing pressure to respond strongly to US intelligence agency reports that Russia is continuing to meddle in US politics.

Members of Congress, including many of Trump’s fellow Republicans, who passed the sanctions bill nearly unanimously, have repeatedly called on the administration to take a harder line against Moscow.

Administration officials said they hoped the action against EDD would send a message to others considering buying the S-400.

US officials have been discussing the issue particularly with NATO ally Turkey, which wants to buy the Russian-made S-400 surface-to-air missile batteries.

Washington has expressed concern that Turkey’s planned deployment of the S-400s could pose a risk to the security of some US-made weapons and other technology used by Turkey, including the F-35 fighter jet.

US officials have warned that Turkey’s purchase of the system could contravene CAATSA.

“We hope that at least this step will send a signal of our seriousness and perhaps encourage others to think twice about their own engagement with the Russian defense and intelligence sectors,” another US official said.

China, Russia warn US of consequences over sanctions

AFP reports from Moscow:  Moscow and Beijing lashed out Friday at Washington’s new anti-Russian sanctions that also target China for the first time, warning the United States could face consequences.

The United States is “playing with fire”, Russia’s deputy foreign minister Sergei Ryabkov said, while Beijing voiced “strong indignation” over the move.

United in their resentment of America’s global influence, China and Russia have sought in recent years to tighten up their ties and this month conducted week-long joint military drills, Moscow’s largest ever war games.

On Thursday, China—which is also locked in a trade war with Washington—got caught up in the sanctions war against Russia as the United States announced a new raft of measures that would punish third countries for dealing with Moscow.

Stepping up pressure on Moscow over its “malign activities,” the US State Department said it was placing financial sanctions on the Equipment Development Department of the Chinese Ministry of Defence, and its top administrator, for its recent purchase of Russian Sukhoi Su-35 fighter jets and S-400 surface-to-air missile systems.

Beijing on Friday urged the United States to withdraw sanctions or “bear the consequences”.

“The US actions have seriously violated the basic principles of international relations and seriously damaged the relations between the two countries and the two militaries,” said foreign ministry spokesman Geng Shuang, adding Beijing had lodged an official protest with the United States.

“We strongly urge the US to immediately correct their mistake and withdraw their so-called sanctions, otherwise the US will have to bear the consequences.”

US officials said it was the first time a third country has been punished under the CAATSA sanctions legislation for dealing with Russia, signalling Donald Trump’s administration will risk relations with other countries in its campaign against Moscow.

• ‘Undermining stability’ -

Moscow said Washington was rocking global stability and said sarcastically that placing sanctions on Russia has become Washington’s favourite “pastime.”

“It would be good for them to remember there is such a concept as global stability which they are thoughtlessly undermining by whipping up tensions in Russian-American ties,” said Ryabkov.

“Playing with fire is silly, it can become dangerous,” he said in a statement.

The State Department also announced it was placing 33 Russian intelligence and military-linked actors on its sanctions blacklist.

All of them—defence related firms, officers of the GRU military intelligence agency, and people associated with the Saint Petersburg-based Internet Research Agency disinformation group—have been on previous US sanctions lists.

Twenty eight of them have already been indicted by Robert Mueller, who is investigating election meddling by Russia.

US officials said that the US could consider similar action against other countries taking delivery of Russian fighter jets and missiles.

Turkey is in talks to buy S-400 missile systems from Russia.

Ryabkov reiterated that none of the rounds of sanctions had managed to force Russia to change its course so far.

“It appears that it has become a sort of national pastime there,” he added, noting the latest round of anti-Russian measures was the 60th since 2011.

For all of Russia’s seemingly upbeat rhetoric the new measures can hurt the country’s struggling economy.

Arms exports are an important source of revenue for the country and last year Russia sold more than $14 billion worth of arms overseas.

• Sanctions target only Russia? -

A senior US administration official, speaking on condition of anonymity, insisted the ultimate target was Russia.

“CAATSA sanctions in this context are not intended to undermine the defence capabilities of any particular country,” the official said.

CAATSA, or the Countering America’s Adversaries Through Sanctions Act, was passed in 2017 as a tool that gives Washington more ways to target Russia, Iran and North Korea with economic and political sanctions.

China’s EDD and its director Li Shangfu became targets after taking delivery over the past year of the jets and missiles from Rosoboronexport, Russia’s main arms exporter already on the US blacklist for its support of Bashar al-Assad’s regime in Syria.

The US official said Washington had spent “an enormous amount of time” seeking to discourage prospective buyers of Russian arms.

The new sanctions came as the United States and China are in the heat of a trade war.

The two countries will launch new tariffs on Monday, with Washington targeting $200 billion in Chinese exports and Beijing hitting $60 billion worth of American products.