EU Reportedly Negotiates China Sanction Swap to Save ASML Supplier Sindlhauser

The European Union is in talks with China to lift export restrictions on German precision-manufacturing and advanced-coatings firm Sindlhauser Materials GmbH, an ASML supplier that risks shutting down in the coming months without access to Chinese rare earths, according to a Bloomberg report citing people familiar with the matter. In exchange, the EU would reportedly remove restrictions on one unnamed Chinese company accused of aiding Russia's war effort in Ukraine, though any EU delisting requires unanimous approval from member states. China placed Sindlhauser and 13 other European companies on its export-control list in July 2026—officially citing alleged dealings with Taiwan following the EU's 21st Russia sanctions package—which barred Chinese exporters and third-party distributors from supplying the firm with China-origin dual-use items and critical minerals. Officials told Bloomberg that Beijing spent the past 18 months mapping Western supply chains to identify Sindlhauser as a pressure point on ASML, even as ASML's Q3 China sales surged ahead of broader export restrictions.