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Sanctions Before Xi Visit
China issued retaliatory sanctions against seven U.S. entities, with Beijing’s Ministry of Commerce announcing the measures in separate orders Wednesday.
“China has issued retaliatory sanctions against seven U.S. companies and organizations”
The sanctions imposed a China-wide ban on commercial and institutional dealings with the seven entities, according to the ministry’s statement.
UPI reported that the sanctions were issued weeks before Chinese leader Xi Jinping’s September visit to Washington, and that the U.S. State Department declared China’s treatment of its Uyghur Muslim minority group a genocide in 2021.
UPI said the ministry blacklisted Applied DNA Sciences Inc., Stratum Reservoir LLC, Altana Technologies Inc., Responsible Business Alliance, Verite Group Inc, and Human Rights in China for assisting and supporting "the United States' illegal sanctions concerning Xinjiang".
UPI also said Compliance Testing LLC was hit for assisting and supporting U.S. Federal Communications Commission actions "harming China's sovereignty, security and development interests," and that the countermeasures came after the United States added 43 companies to its Uyghur Forced Labor Prevention Act Entity List.
Drone Curbs and Trade
CNBC said Beijing’s Ministry of Commerce barred Chinese entities from doing business with seven American companies and organizations, tightened export controls on U.S.-bound drones and related technology, and prohibited Chinese firms from cooperating with U.S. compliance and certification bodies.
CNBC reported that six of the named entities were sanctioned over their involvement in Xinjiang-related sanctions, and that Arizona-based Compliance Testing was blacklisted for assisting recent Federal Communications Commission measures against Chinese products.
CNBC quoted Eurasia Group saying the measures marked the first time Beijing has sanctioned firms that help enforce the Uyghur Forced Labor Prevention Act, with "significant implications" for U.S. businesses operating in China.
CNBC also quoted William Bratton of BNP Paribas saying Beijing is "starting to replicate" Washington’s attempts to curb Chinese access to Western technologies.
Scripps News added that China’s measures included launching a national security investigation into imported office equipment with foreign system software and suspending certain factory tracking inspection collaboration with the US, while a ministry spokesperson said Beijing had "no choice but to take necessary countermeasures."
Stakes for the Truce
Ahead of the expected summit between Xi Jinping and President Donald Trump in the US next month, Scripps News said China’s retaliation was described as response to recent moves by Washington targeting Chinese companies.
“"constructive strategic stability"”
The UPI account said the U.S. move of adding 43 companies to the Uyghur Forced Labor Prevention Act Entity List effectively banned the import of their products on the presumption they were made using the forced labor of Uyghurs in northwestern Xinjiang region.
Scripps News reported that China’s Ministry of Commerce said six of the companies were added to China’s so-called countermeasures list in retaliation for the US’s move last week banning imports from 43 Chinese companies over alleged human rights abuses of Uyghur and other minority groups.
Scripps News also said a seventh company’s listing was linked to the US Federal Communications Commission’s ban last month on imports of new humanoid and quadruped robots, as well as power converters.
CNBC said the tit-for-tat measures were aimed at generating fresh leverage ahead of the summit, and quoted Peter Alexander of Z-Ben Advisors saying both sides are attempting to come up with "new approaches, new sanctions, new limitations" where they can then potentially horse trade.