China has announced a series of retaliatory measures targeting the United States and several American companies, escalating tensions between the world’s two largest economies following what Beijing described as recent actions by Washington against Chinese firms.
China’s Ministry of Commerce announced that it was sanctioning seven American entities, including a biotech and a resource analytics firm, and tightening export controls on drones to the US.
It also launched a national security investigation into imported office equipment with foreign system software, and suspended certain factory tracking inspection collaboration with the US.
Beijing is requiring reviews on a case-by-case basis of exports of unmanned aerial vehicles, their key components and related technologies that are on a list of export-controlled dual-use items that can serve both civilian and military purposes. Six U.S. entities, including Applied DNA Sciences, Inc. and the non-governmental group Human Rights in China, were banned from engaging in trade or other activities with entities in China.
According to a separate statement from the Commerce Ministry, China also banned a company called Compliance Testing LLC from engaging in business in China because it had worked with the FCC in “harming China’s sovereignty and security.” The ministry also said that it was investigating the possible impact on national security of imported printing software and office equipment, but it did not name affected companies.
The State Administration for Market Regulation announced that companies in the U.S. that conduct follow-up factory inspections on behalf of Chinese entities for CCC certification can no longer provide these certifications.
CCC certifications are meant to ensure electronic products meet a basic safety standard. The new rule will oblige U.S. makers of certified electronics to hire auditors based outside of the U.S. or to rely on other non-U. S. designated bodies for such certifications.
The Commerce Ministry said that the sanctions are in response to recent moves from the U.S., including a ban by the U.S. Federal Communications Commission (FCC) on imports of Chinese drones, and the Department of Homeland Security’s decision to add 43 Chinese companies to the Uyghur Forced Labor Prevention Act entity list to prevent imports of goods made with forced labor.
Over the past roughly two weeks, the Trump administration has banned the import of new advanced robotics and power converters (largely produced in China); sanctioned Chinese shipping operators alleged to be handling Iranian fuel; and blacklisted more than 40 Chinese firms, as well as two top civilian universities. Washington has also threatened to sanction Chinese AI firms.
In December, the U.S. FCC banned the import of new Chinese drones, though it later revised that ban to allow for some models. Last week, it also announced bans on imports of new foreign-made humanoid robots and power inverters, citing national security risks, in a move that in effect targets China.
China was among dozens of countries Washington last month hit with a 10% or 12.5% tariff over alleged failure to curb exports made by forced labor. Last December, the U.S Federal Communications Commission banned the import and sale of new drone models and critical equipment made by foreign manufacturers, citing national security.
The tit-for-tat sanctions come weeks ahead of an expected summit between Chinese leader Xi Jinping and President Donald Trump in the US next month, as the world’s two largest economies struggle to maintain what they have called “constructive strategic stability” amid an intensifying tech rivalry.
Despite signs of warming ties during his meetings with U.S. President Donald Trump in Beijing in May, tensions are simmering between the world’s two biggest economies ahead of an expected visit by Chinese President Xi Jinping to the U.S. in September.
China Defends Countermeasures
A Ministry Spokesperson said that China had “no choice but to take necessary countermeasures” in response to recent American measures targeting Chinese firms, saying that the U.S measures “seriously violate the important consensus reached by the two Heads of state and severely damage China’s legitimate rights and interests.”
The Spokesperson asserted that China urges the United States to “immediately revoke the relevant measures, stop its erroneous actions … and work together to maintain a constructive and stable China-US relationship.”
The Spokesperson added that if the United States insists on introducing new restrictive measures against China, China will take further countermeasures.
Beijing has repeatedly criticised the United States for imposing sanctions, export restrictions and investment limitations on Chinese companies, arguing that such measures amount to economic coercion and interfere with fair market competition.
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