China hits US with sanctions, drone export curbs ahead of Xi visit

CNN:  

Beijing announced a swath of measures against the United States and its firms on Wednesday, in what it described as retaliation against recent moves by Washington targeting Chinese companies.

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’ve called “constructive strategic stability” amid an intensifying tech rivalry.

China’s Ministry of Commerce announced 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.

A ministry spokesperson said Beijing had “no choice but to take necessary countermeasures” in response to recent American measures targeting Chinese firms.

“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 said.

“If the United States insists on introducing new restrictive measures against China, China will take further countermeasures.”

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.

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.

The US Federal Communications Commission last December banned the import and sale of new drone models and critical equipment made by foreign manufacturers, citing national security.