EU Weighs Lifting Sanctions on Chinese Textile Firm Yusha in ASML Supply Chain Deal

Brussels is under pressure to delist Yusha Group, a Chinese textiles manufacturer accused of supplying sensitive European technology to Russian buyers, as part of a negotiated exchange with Beijing. Diplomats from the EU's 27 member states were lobbied this week to approve the reprieve. Under the proposed arrangement, Beijing would commit Yusha to halting shipments of banned items to Russian military-linked purchasers, while also removing German supplier Sindlhauser Materials from its own export controls list. Sindlhauser is a reported supplier to ASML, the Dutch chipmaking equipment giant and Europe's most valuable technology company, and the deal is intended to safeguard that supply chain. Sources familiar with the matter describe the swap as the product of high-level negotiations between EU and Chinese officials. No decision has been confirmed.