The United States plans to impose new sanctions on Chinese entities that are fueling Russia’s war in Ukraine, Bloomberg reported on July 19, citing U.S. national security adviser Jake Sullivan.

According to Bloomberg, Sullivan indicated that Chinese banks could also be targeted.

“We believe that China should stop doing this because we believe it is well outside the bounds of decent nation-state behavior,” Sullivan said at the Aspen Security Forum in Colorado.

“You can expect to see further sanctions in the coming weeks as this picture continues to develop.”

China has positioned itself as neutral in the ongoing war, but has strengthened economic ties with Russia and has become the main supplier of dual-use goods to the Russian defense industry.

Sullivan cited US President Joe Biden’s executive order in late 2023, which allowed the US Treasury Department to impose sanctions on banks that finance the production of dual-use goods that benefit Russia’s defense industry.

“These powers were granted for a reason,” said the US national security adviser.

“We have it set up so that if we find a bank that we believe is subject to sanctions, we can take action,” Sullivan said.

“I don’t have a prediction today, but I will tell you that over time we have built up the tools to be able to respond to this kind of behavior. And we will respond to this kind of behavior.”

Washington previously warned Beijing of possible sanctions for supporting Russia’s defense industry. Sullivan’s statement indicated that new restrictions were “imminent,” Bloomberg reported.

China responds when the U.S. provides concrete evidence of financial transactions that violate U.S. sanctions on Russia. But “the overall picture is not rosy,” Sullivan said. Chinese companies continue to support Russia’s war effort.

Chinese leaders have previously denied supporting either side in the war, claiming that their ties with Russia do not go beyond the bounds of a “normal” relationship, while stressing their close cooperation with Moscow.

Chinese President Xi Jinping and Russian President Vladimir Putin last met in May, when Putin was in China for two days.

At a press conference on May 16, the two presented themselves as partners and opposed a Western, US-led world order.

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The news comes days after NATO Secretary General Jens Stoltenberg said on July 11 that China is a “decisive accomplice” in Russia’s large-scale invasion of Ukraine.