BERLIN, May 31 (Reuters) - Deputy U.S. Treasury

Secretary Wally Adeyemo said on Friday that Washington and the

European Union must deliver a message to China that its firms

face a choice between doing business with U.S. and EU economies

or equipping Russia with dual-use goods.

It had to be made clear that "Chinese firms can either do

business in our economies or they can equip Russia's war

machinery with dual-use goods. They can't continue to do both,"

he said on a visit to Berlin.

"Let's make clear to Chinese companies that we are all

prepared to use our sanctions and export controls to hold them

accountable," he said.

The warning to Chinese firms comes as President Joe Biden's

administration has stepped up messaging about China's support

for Russia and issued an executive order in December that

threatened sanctions on financial institutions helping Moscow

skirt Western sanctions.

Russia last year imported $5.2 billion worth of

sensitive, dual-use goods - which can be used for both civil and

military purposes - from China-based suppliers, Adeyemo said.

Adeyemo warned that failing to convince China to stop

selling dual-use goods to Russia poses a significant threat to

Europe's national security, adding that Russian President

Vladimir Putin was confident that he could challenge NATO.

Many of the goods from coalition countries still being

found in Russian military equipment are largely being

transhipped through China, he said.

Adeyemo's warning to China comes after U.S. Deputy

Secretary of State Kurt Campbell on Wednesday accused China's

leadership of supporting Russia's war in Ukraine and warned that

Beijing could face further sanctions in response from the United

States and other NATO countries.

On Tuesday, White House Deputy National Security Adviser

for International Economics Daleep Singh said the U.S. and its

partners were prepared to use sanctions and export controls to

prevent China-Russia trade that threatens their security amid

the Ukraine war.