(Bloomberg) -- President Joe Biden said European allies are prepared to cut investment to China if it keeps up its support for Russia, offering a warning after NATO accused Beijing of enabling the invasion of Ukraine.

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Biden reiterated that China was not directly supplying weapons to Russian President Vladimir Putin’s forces but also underscored it wouldn’t benefit financially “if they are supplying Russia with information and capacity.”

Chinese President Xi Jinping “believes that China is a large enough market that they can entice any country, including European countries to invest there, in return for commitments from Europe,” Biden said at a press conference on Thursday. “Some of our European friends are going to be curtailing their involved investment” if China continues its help, he added.

The press conference was overshadowed by persistent questions about Biden’s age and fitness for office after he stumbled repeatedly in a debate against Donald Trump two weeks ago. He sought to use the press conference to demonstrate his strong leadership, saying “there isn’t any world leader I’m not ready to deal with” — including Xi.

“I’m dealing with Xi right now — I have direct contact with him,” Biden said, without detailing what that entailed.

Biden’s comments marked the latest broadside against China over Xi’s deepening relationship with Putin, something that has been an increasing focus as allies look to choke off Russia’s war machine in Ukraine and force it to cede territory. Russia has turned to Iran and North Korea for drones and ammunition, and to China for parts that western officials say can be used for the campaign.

In its summit communique this week, NATO described China as a “decisive enabler” of Russia’s war against Ukraine. The communique detailed China’s supply of dual-use materials such as weapons components, equipment and raw materials that serve as inputs for Russia’s defense sector.

China has said repeatedly it doesn’t provide weapons to Russia or Ukraine, and “strictly controls” the export of dual-use articles. It has blamed the US and its allies for fueling the war and imposing “illegal unilateral sanctions.”

European capitals were alarmed by reports this month that Chinese and Russian companies were developing an attack drone similar to an Iranian model deployed in Ukraine, Bloomberg reported earlier.

A survey by the European Union Chamber of Commerce in China released in May found that companies from the bloc were losing their appetite to investment in the world’s-second biggest economy. Only 42% said they plan to expand their operations in China this year, the lowest since records began in 2012.

Foreign investment more broadly into China has been slowing. A measure of foreign direct investment into the nation declined for the 12 months in a row, according to data released by the Chinese Ministry of Commerce in late June, underscoring Beijing’s struggle to improve its appeal to overseas investors to boost growth.

The push from NATO shows a growing consensus between the US and its partners that Beijing represents a threat not just in Asia, but also to European security through its support for Russia. In recent years, European capitals from Berlin to London, Prague and Vilnius have hardened their stance on China.

--With assistance from Colum Murphy and Lucille Liu.

(Updates with investment statistics)

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