China has identified dozens of U.S. companies, including Raytheon, Boeing, and Lockheed Martin, in a series of punitive trade measures that may escalate tensions between the two nations.
With the inauguration of President-elect Donald J. Trump approaching, who has pledged to impose new tariffs and sanctions on China, Beijing is signaling its readiness to respond.
The Ministry of Commerce in China announced the addition of 28 companies to an export control list aimed at “safeguarding national security and interests.” The measures include a ban on the export of dual-use items, which serve both civilian and military purposes, to these companies. Additionally, 10 companies have been placed on an “unreliable entities list” due to their involvement in arms sales to Taiwan, restricting them from conducting business in China and barring their executives from entering or residing in the country.
Experts note that similar actions have been taken in the past, albeit on a smaller scale, against these companies, most of which have limited operations in China. Andrew Gilholm, a China expert at Control Risks, remarked that while many of these entities were already under sanctions, the current listing reflects a broader scope and increased number of companies targeted.
Among those named are prominent American defense manufacturers, including Raytheon Missile Systems, Boeing Defense, Space and Security, and Lockheed Martin Missiles and Fire Control. These companies have not yet responded to requests for comment.
Michael Hart, president of the American Chamber of Commerce in China, indicated that Chinese authorities typically avoid actions that would directly impact businesses operating within the country. He noted that such measures usually do not affect companies contributing positively to China's economy.
As China prepares for a potential second term of President Trump, who has been critical of its economic practices, it has adopted a more assertive stance. Recent actions include an investigation into the American chipmaker Nvidia, a ban on the export of rare minerals to the U.S., and targeted measures against specific companies to highlight vulnerabilities in their supply chains.
This series of actions is part of an escalating economic tit-for-tat that began during Trump's first term, following his imposition of tariffs and trade restrictions on China. Beijing's initial responses were largely symbolic and measured.
Under the Biden administration, restrictions on Chinese companies have intensified, including bans on dual-use products affecting 140 Chinese firms. In recent years, China has established legal frameworks to replicate Washington's tactics, creating blacklists and sanctions that could sever American companies from essential resources. Experts suggest that China is now more willing to take decisive action, with an increasing frequency of such measures anticipated.