Arti Bali
Beijing/ New Delhi, Aug 5 (UNI) China on Wednesday tightened export controls on drone-related dual-use items destined for the United States and imposed sanctions on six US companies, the latest escalation in a deepening technology and trade dispute between the world's two largest economies ahead of an expected summit between Chinese President Xi Jinping and US President Donald Trump next month.
The reciprocal measures come as Washington and Beijing strive to maintain what both sides have described as constructive strategic stability, even as their rivalry over advanced technologies, trade, and national security continues to intensify.
China's Ministry of Commerce (MOFCOM) said exports of drones, key components, and related technologies included in the country's dual-use export control list will now be subject to strict case-by-case licensing reviews when destined for the United States. Such exports will no longer qualify for expedited licensing procedures.
The ministry said the measures were introduced to "safeguard national security and interests" and fulfill China's international obligations, including non-proliferation commitments. The restrictions took effect on August 5.
Separately, Beijing announced sanctions against six US companies, including biotech firm Applied DNA Sciences and geoscience research company Stratum Reservoir, prohibiting Chinese organisations and individuals from engaging in transactions, cooperation or other business activities with them.
The commerce ministry said the six companies were added to China's countermeasures list in retaliation for the United States' decision last week to ban imports from 43 Chinese companies over alleged human rights abuses involving Uyghurs and other minority groups in Xinjiang.
A seventh US company was separately sanctioned in response to the US Federal Communications Commission's decision last month to prohibit imports of new humanoid and quadruped robots—products largely manufactured in China—as well as certain power converters.
The US Department of Homeland Security (DHS), acting on behalf of the Forced Labor Enforcement Task Force, announced last week the addition of 43 Chinese companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, describing it as the single largest expansion of the list since the law came into force.
Effective August 3, US Customs and Border Protection began applying a rebuttable presumption that goods produced by those companies are barred from entering the United States because of alleged links to forced labour in Xinjiang or cooperation with authorities in labour transfer programmes involving Uyghurs, Kazakhs, Kyrgyz and other minority groups.
Announcing the measures, DHS Secretary Markwayne Mullin said the administration would ensure products made by the listed companies "do not enter our country," arguing the action protects American workers from unfair competition linked to forced labour. DHS said US authorities have blocked more than 24,300 shipments worth nearly USD 1 billion under the UFLPA since the law was enacted.
China rejected the allegations, with its commerce ministry saying the sanctioned US companies had "assisted and supported illegal US sanctions related to Xinjiang" and describing their actions as "egregious."
The moves come as trade and technology disputes between Washington and Beijing continue to widen. China's Vice Premier and top trade official He Lifeng conveyed Beijing's "serious concern" over recent US restrictions during a phone conversation with US Trade Representative Jamieson Greer, according to state news agency Xinhua.
The latest Chinese action also follows reports that Washington is considering banning imports of new Chinese optical transceivers while preparing minimum price requirements and tariffs on polysilicon and related products.
Responding to the reported US plans, Chinese Foreign Ministry spokesperson Lin Jian accused Washington of "overstretching the concept of national security" and using state power to suppress Chinese companies.
"Protectionism will not make the US more competitive," Lin said, adding that the proposed measures would seriously disrupt normal trade and economic exchanges between Chinese and US businesses and harm the interests of companies and consumers in both countries. He said China would continue to "firmly protect" the legitimate rights and interests of its businesses.
In a separate statement, the Commerce Ministry also criticised reported US plans to investigate and potentially sanction Chinese artificial intelligence companies over allegations they used "distillation" techniques to replicate advanced US AI models and misappropriated American intellectual property.
The ministry rejected the accusations as politically motivated and without factual or legal basis, accusing Washington of "politicising and instrumentalising" technology issues and engaging in what it called "AI hegemonism."
MOFCOM said many US companies also use model distillation in AI development and noted that nearly 200 American startups had urged the US government not to restrict access to Chinese open-source AI models, warning such actions would weaken the competitiveness of US firms.
China warned that it would take "all necessary measures" to safeguard its legitimate rights and interests if US actions cause substantive harm to Chinese interests, while urging Washington to strengthen dialogue and cooperation on artificial intelligence in line with the consensus reached by the leaders of the two countries.
UNI AAB RSA