Sanctions Imposed by China on US Companies

In response to the 34% increase in import tariffs imposed by the United States on certain products, China has implemented various sanctions targeting American companies. According to an announcement from the Chinese Ministry of Commerce, 27 American companies have been added to export control or prohibition lists. Among these companies, 16 face export restrictions on products used for both military and civilian purposes, while 11 have been placed on the list of “unreliable entities” subject to export bans. The Ministry reported that these 16 American companies have been included on the export control list to comply with international obligations aimed at safeguarding China’s national security, interests, and preventing the proliferation of weapons. The activities of the companies operating in defense, aviation, drone manufacturing, intelligence, and logistics sectors will now be subject to export scrutiny when dealing with China. Additionally, it was noted that 11 companies, including unmanned aerial vehicle manufacturers like Skydio and BRINC Drones, were placed on the “unreliable entities” list due to their involvement in technology cooperation with Taiwan, which is a point of sovereignty dispute with China.
In a separate matter, the Ministry disclosed that it has initiated an anti-dumping investigation on certain imported medical tomography tube products from the United States and India, as well as a competition probe into the general import of these products. Simultaneously, China’s State Administration for Market Regulation has launched an investigation into the suspected violation of anti-monopoly laws by the Chinese subsidiary of the multinational chemical company Dupont. Moreover, the General Administration of Customs of China has revoked the export permits for poultry products and sorghum broom exports from six American companies.
China’s actions came after US President Donald Trump announced an additional 34% tariff increase on China under the framework of “reciprocal tariffs.” The administration in Washington had stated that, in addition to the existing 10% base tariff, a 24% “reciprocal tariff” would be imposed, resulting in a total 34% increase in import duties on Chinese goods. With the new tariff increases, the minimum tariff applied by the US on Chinese imports had risen to 54%. In response, the Beijing administration announced that it would apply an equal additional tariff in response to the 34% tariff increase imposed by the US under the “reciprocal tariffs” framework, and had also placed restrictions on the export of certain rare earth elements.