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China sanctions US firms, tightens export controls ahead of Xi visit

China sanctioned seven US entities and launched a national security probe into office equipment imports as Washington added 43 Chinese companies to its forced-labor entity list.

Reported · Written up by our desk · Trade & Tariffs

Beijing and Washington’s latest round of trade and technology tit-for-tat measures is set to complicate efforts to stabilize ties before a planned September visit by Chinese President Xi Jinping to Washington, according to SCMP Economy.

China’s Ministry of Commerce sanctioned seven US entities and tightened export controls on drones and related technologies, citing national security. The ministry also launched a national security investigation into imported printing and copying office equipment that uses foreign-made software, the outlet said.

SCMP Economy reported that the moves followed Washington’s decision last week to add 43 Chinese companies to its Uygur Forced Labour Prevention Act entity list. In parallel, the US Federal Communications Commission banned the import and sale of new foreign-made robotic devices and power inverters, areas where China is a global leader.

SCMP Economy cited Dominic Chiu, a senior analyst at Eurasia Group risk advisory firm, saying the measures would heighten tensions but were unlikely to derail Xi’s visit. Chiu said Beijing’s response appeared “calibrated to impose costs without breaking the truce,” signaling both willingness to escalate and willingness to engage and de-escalate.

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