China Halts Ammo Supply to Belgian Arms Maker FN Herstal

China has imposed export restrictions on Belgian arms manufacturer FN Herstal and its parent company FN Browning Group, halting the supply of nitrocellulose — a critical propellant ingredient known as “shooting cotton” — and threatening the company’s ability to produce small arms ammunition. The measures, announced on 24 April 2026, are part of broader Chinese sanctions against seven European defense entities accused of selling weapons to or collaborating with Taiwan, as reported by Belga News Agency.

Context

The sanctions mark the first time European companies have been specifically targeted under China’s dual-use export controls for alleged arms sales to Taiwan, according to Bloomberg. The seven entities placed on China’s export control list include FN Herstal and FN Browning (Belgium), HENSOLDT AG (Germany), and four Czech firms: OMNIPOL a.s., EXCALIBUR ARMY spol.s.r.o, SPACEKNOW INC., and VZLU AEROSPACE a.s.

Chinese exporters are now prohibited from supplying “dual-use” items — goods, technologies, or services usable for both civilian and military purposes — to these entities. The Chinese Ministry of Commerce stated that the measures “target only a few EU military-related entities” and do not affect normal trade, as reported by Le Monde.

The Nitrocellulose Bottleneck

At the heart of the crisis is nitrocellulose, or “shooting cotton” — an essential chemical compound used in gunpowder and propellants for small arms ammunition. Europe’s defense industry relies heavily on Chinese cotton linters, a by-product of cotton processing that serves as the raw material for nitrocellulose production.

Rheinmetall CEO Armin Papperger warned the Financial Times in April 2024 that Europe depends on China for “more than 70 percent” of its cotton linters used to make nitrocellulose. This dependency has become a critical vulnerability as European nations seek to ramp up ammunition production under the EU’s Act in Support of Ammunition Production (ASAP), which set a target of 2 million rounds per year by the end of 2025.

Escalating EU-China Trade Tensions

The sanctions came just one day after the European Union imposed sanctions on Chinese companies for business dealings with Russia, suggesting a tit-for-tat dynamic. Belgian Prime Minister Bart De Wever sent a critical letter to European Commission President Ursula von der Leyen, stating: “China is destroying our economy and we must have the courage to call things by their name,” as reported by De Morgen.

Belgian Foreign Minister Maxime Prévot traveled to China in late April for his first official visit amid the strained relations, though no specific outcomes regarding the sanctions have been reported.

Industry and Expert Reactions

FN Browning’s press service declined to comment on the sanctions, suggesting the company is still assessing the impact. However, Agoria, the Belgian technology federation, called for greater EU autonomy in defense, emphasizing that “access to critical raw materials and strategic products is crucial, not only for strengthening our European defence, but also for the energy transition and digitalisation,” as reported by The Brussels Times.

Victor De Decker of the Egmont Institute, a Belgian think tank, noted: “It is striking that the Chinese more often openly announce export restrictions. That is something of recent years. China has more self-confidence due to its great grip on supply chains,” as reported by De Morgen.

Broader Implications for European Defense

The FN Herstal case is a microcosm of Europe’s broader dependence on Chinese inputs for defense production. Policy analysts describe nitrocellulose as part of a wider “defence chemicals” challenge: Europe can expand final assembly lines for shells, but without secure propellant inputs, production plans can be slowed or halted.

Industry responses are emerging. Rheinmetall acquired Hagedorn-NC, a German nitrocellulose producer, in April 2025, aiming to shift production toward military-grade output. Diversification options exist — such as wood-derived pulp or Central Asian cotton sources — but require lengthy qualification and recertification processes that could take years.

What’s Next

The immediate impact on FN Herstal’s production capacity remains unclear, as the company has not publicly disclosed its nitrocellulose inventory levels or alternative supply arrangements. The timing is particularly sensitive: FN Herstal recently unveiled its new FN ARKA rifle at Eurosatory 2026 and signed a 10-year contract with the British Army for heavy machine gun maintenance.

As China increasingly uses export controls as a geopolitical tool, the European defense industry faces a strategic reckoning. The question is no longer whether Europe should reduce its dependence on Chinese supply chains, but how quickly it can do so — and at what cost.