China on Thursday singled out dozens of U.S. companies, including Raytheon, Boeing and Lockheed Martin, in a series of punitive trade measures that could heighten tensions between the two superpowers.
With weeks to go before newly elected President Donald J. Trump takes office promising to impose new tariffs and sanctions on China, Beijing is once again showing its willingness to strike back.
China's Ministry of Commerce said it has added 28 companies to an export control list to “protect national security and interests.” It also banned the export of so-called dual-use products, which have both civilian and military applications, to those companies. And it placed 10 companies on what it calls an “unreliable entity list” linked to arms sales to Taiwan, barring them from doing business in China and banning their executives from entering or living in the country .
Chinese authorities have taken similar — albeit more limited — measures in the past against these companies, most of which have a limited presence in China, said Andrew Gilholm, a China expert at the consultancy Control Risks.
“Most of this is probably on a symbolic level because so many of these entities were already under sanctions,” he said. But, he added, “what we are seeing is the ever-increasing scope and number of entities being added into one list.”
Among the companies called out by China were leading American makers of defense systems, including Raytheon Missile Systems, Boeing Defense, Space and Security and Lockheed Martin Missiles and Fire Control. The companies did not immediately respond to emailed requests for comment.
Michael Hart, president of the American Chamber of Commerce in China, said Chinese authorities have generally been careful not to take action that directly affected companies' operations on the ground.
“Typically, the actions China takes do not impact companies that benefit the Chinese economy,” Mr. Hart said.
Beijing has taken an increasingly aggressive stance as it prepares for a second presidential term with Trump, an outspoken critic of China and its economic power.
Chinese regulators have announced an investigation into US computer chip company Nvidia, banned the export of rare minerals to the United States and increased targeted attacks on individual companies to expose vulnerabilities in their supply chains.
The moves are part of an economic tit-for-tat that has escalated in recent months. It started during Trump's first term, after he targeted China with tariffs and trade restrictions. At that time, Beijing's response was mainly symbolic and measured in retaliation.
Since then, the Biden administration has also expanded its restrictions on Chinese companies and imposed a ban on dual-use items, recently targeting 140 Chinese companies. On Thursday, the administration said it was considering a new rule that could restrict or ban Chinese drones in the United States.
In recent years, China has laid the legal groundwork to mirror Washington's tactics, creating blacklists and sanctions that could cut off U.S. companies from crucial resources. Beijing is now showing greater willingness to take action, Mr. Gilholm said.
“The pace is increasing. The drumbeat of these things will become more common.”
Claire Fu contributed reporting from Seoul.
