China announced on Wednesday a package of economic countermeasures against the United States, including new controls on exports of unmanned aerial vehicles (drones) and a ban on dealings with six U.S. entities, in response to recent U.S. restrictions.
The Commerce Ministry said the measures respond to recent U.S. moves such as the Federal Communications Commission’s ban 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. The ministry said the actions “seriously violate the important consensus reached by the two heads of state and severely damage China’s legitimate rights and interests. China has no choice but to take necessary countermeasures in response.”
China sanctions: export controls and entity bans
Beijing said it will require case-by-case reviews of exports of unmanned aerial vehicles, their key components and related technologies that appear on a list of export-controlled dual-use items that can serve both civilian and military purposes. The ministry emphasized that China was acting with restraint, urged the U.S. to scrap its measures and cease what it called “erroneous practices,” and warned of further sanctions if the United States imposes new restrictive measures.
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. In a separate Commerce Ministry statement, China said it had barred Compliance Testing LLC from doing business in China because it had worked with the FCC in “harming China’s sovereignty and security.”
The ministry also said it is investigating the possible national security impact of imported printing software and office equipment, but it did not name any affected companies.
The State Administration for Market Regulation announced that U.S. firms that conduct follow-up factory inspections on behalf of Chinese entities for China Compulsory Certification (CCC) can no longer provide those certifications. The new rule will require U.S. makers of certified electronics to hire auditors based outside the U.S. or to rely on other non-U.S. designated bodies for CCC certifications.
Tensions between the world’s two largest economies have been simmering ahead of an expected visit by Chinese President Xi Jinping to the U.S. in September, despite signs of warming ties during his May meetings with U.S. President Donald Trump in Beijing.
U.S. regulatory actions cited by China include the FCC’s December ban on imports of new Chinese drones — a ban the FCC later revised to allow some models — and last week’s U.S. announcements banning imports of new foreign-made humanoid robots and power inverters, moves the U.S. said were based on national security risks and that in effect target China.
Leung reported from Hong Kong.
