Sindlhauser risks going out of business in the coming months if the sanctions remain
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The deal was discussed during EU Commissioner for Trade and Economic Security Maroš Šefčovič’s visit to Beijing. The EU is expected to make the first move, with any delisting on its end requiring unanimous support from member states. Both sides also agreed to share more information and give advance warning on future export restrictions.
In July 2026, China put Sindlhauser, a German precision-manufacturing and advanced-coatings firm, on its export-control list, along with 13 other European companies, in apparent retaliation for the EU’s 21st Russia sanctions package, which sanctioned several Chinese firms accused of supplying Moscow with components that can be used to make weapons. Beijing’s official reason was the firms’ alleged dealings with Taiwan.
China’s selection of Sindlhauser is not random, as the company sits in ASML’s supply chain. According to Bloomberg, officials believe Beijing has spent the last year and a half gathering information on Western supply chains , and used the data to identify the seemingly obscure German firm as a pressure point on the world’s most important chipmaking-equipment company.
Sindlhauser relies almost entirely on Chinese rare earths and critical minerals. Therefore, the restrictions, which ban Chinese exporters from selling dual-use items to the firm, cut off its main source of input. They also prohibit foreign companies and individuals from passing on China-origin dual-use items to the firm, thus preventing Sindlhauser from simply sourcing the same materials through a third-party distributor.
Dutch chip sector at very high risk of Chinese interference, government-funded study warns
ASML says it sold 'absolutely nothing' in Europe in 2026
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/semiconductors/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/semiconductors/eu-negotiates-sanction-swap-with-china-to-rescue-critical-asml-supplier-german-coatings-firm-faces-shutdown-without-chinese-rare-earths#main
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