China said Thursday it was adding dozens of American companies to its export control list to “protect national security and interests.” ”
China's Ministry of Commerce said it would impose measures on 28 US entities, and ban exports of dual-use materials to the listed companies starting Thursday, it was reported. the Global Times, a Chinese daily seen as aligned with Beijing, and the the government-run Xinhua news agency. Dual-use items refer to those that can be used for civilian or military purposes.
China also sanctioned 10 defense companies on Thursday over arms sales to Taiwan, the self-governing island that China claims as its own, adding them to China's “Untrustworthy Organizations List”, the ministry, according to AFP.
The moves come as Beijing prepares for President-elect Donald Trump's return to the White House and after the Biden administration expanded its restrictions on Chinese companies amid a back-and-forth escalation. During his presidential campaign, Trump floated the idea of imposing a tariff of up to 60% on all Chinese goods.
China last month said were investigating US microchip maker Nvidia for possible violations of Chinese anti-monopoly laws.
However, the tit-for-tat measures are unlikely to add up to some of the activities at risk, some analysts believe.
“Changes to immigration, trade and fiscal policy under the second Trump administration are likely to be meaningful but stop short of some of the most dramatic proposals,” Goldman Sachs Economic Research analysts said in a recent report. “We expect tariffs on Chinese imports and autos, but not universal tariffs, which would carry economic and political risks that we think the White House would prefer to avoid.”
China's action comes less than a week later is set sanctions on seven companies in response to recently announced US arms sales and aid to Taiwan,
However, Beijing's sanctions targeting American defense companies have limited impact, as US military companies do not sell arms or other such goods to China.
contributed to this report.
