China’s Commerce Ministry announced a package of trade countermeasures aimed at recent US restrictions on technology and trade, Reuters and other reports said. The measures tighten export controls on unmanned aerial vehicles, their key components and related technologies listed as dual use. Exports to the US will face strict case by case review with no eligibility for licence facilitation, the ministry said.
The ministry also barred seven American companies and organisations from doing business with Chinese entities, saying six of the names were connected to recent US measures tied to Xinjiang and that one, Compliance Testing of Arizona, had assisted US regulators. The ministry said those US moves “seriously violated the important common understandings reached by the two heads of state and severely damage China’s legitimate rights and interests.”
Beijing announced additional steps including a fresh national security investigation into imported printers, copiers and other office imaging equipment containing imported software. China’s State Administration for Market Regulation ordered that US firms conducting follow up factory inspections for China Compulsory Certification will no longer be permitted to issue those certifications, requiring non US auditors instead.
Beijing cited recent US actions such as Federal Communications Commission bans on certain foreign made drones and other equipment, and the addition of more than 40 Chinese companies to a US forced labour entity list as triggers for the retaliation. Reuters noted Shenzhen based DJI accounted for roughly 70 percent of the US commercial drone market as of last year, a market position Washington has been seeking to reduce.
Reactions Risks And Implications
Analysts described the moves as a widening of Beijing’s economic toolkit and a calibrated push ahead of high level talks. Wendy Cutler of the Asia Society Policy Institute said the array of measures shows the breadth and depth of China’s retaliatory options. She said Beijing’s response contrasted with its earlier restraint.
Other commentators said Beijing kept the measures reversible to preserve the broader truce while creating leverage for negotiations. William Bratton of BNP Paribas said China appears to mirror US tactics by constraining flows of technology to the US. Eurasia Group warned the bans on compliance bodies and the national security probe could raise costs for US companies operating in China and could be extended to other sectors.
Chinese officials warned they would take further countermeasures if Washington imposes new restrictions. Some analysts and advisers said both sides may try to use such actions as bargaining chips ahead of planned bilateral meetings, while most expect many measures to be managed before leaders meet.
