China signaled on Tuesday that it is prepared to escalate its trade conflict with the United States by imposing restrictions on a prominent American biotechnology firm, Illumina.
The Ministry of Commerce in China announced a ban on Illumina, based in San Diego, from importing its gene-mapping products. Illumina is recognized as the world’s leading producer of gene-sequencing machines and depends on China for approximately 7 percent of its sales.
In addition to targeting Illumina, Chinese authorities indicated that they had taken action against several other U.S. companies in response to recent tariffs imposed by the U.S. government. Fifteen companies, including drone manufacturer Skydio, were identified for punitive trade measures aimed at “safeguarding national security and interests.” Furthermore, ten additional American firms were added to an “unreliable entities list,” which prohibits them from conducting business in China.
These blacklists have become a preferred strategy for Beijing in retaliating against Washington amid the ongoing trade war. Previously, Beijing had focused its actions on defense companies linked to arms sales to Taiwan and firms with minimal operations in China. However, in this instance, the ban on Illumina represents a broader and more impactful measure.
Beijing accused Illumina of violating market transaction rules and discriminating against Chinese firms. The company was previously blacklisted along with PVH, the parent company of Calvin Klein and Tommy Hilfiger, last month.
In response to the ban, Illumina stated it is reviewing the implications of China’s actions on its operations while affirming its commitment to serving customers in the country. An Illumina spokesperson emphasized compliance with Chinese laws and regulations.
Historically, China has hesitated to enact retaliatory measures that significantly impact American companies to avoid unsettling foreign investors. Nevertheless, Chinese officials aimed to mitigate potential concerns regarding their actions, asserting that they are only targeting a limited number of foreign entities threatening national security.
This recent action is part of a broader response following President Trump’s implementation of additional tariffs, which also included new tariffs on U.S. food imports. Analysts suggest that despite efforts from Chinese academics and former diplomats to engage in discussions in Washington, the likelihood of a resolution to trade tensions remains low.
According to industry analysts, China may feel increasingly justified to take further punitive measures against American companies, which could create wariness among other U.S. businesses operating in the region.