Trade war: China imposes sanctions on US companies linked to the Pentagon

The Chinese government has introduced mirror measures against the United States in response to Donald Trump’s increase in duties on Chinese goods to 20%. The decision is reported on the website of the Ministry of Commerce of the People’s Republic of China.

These are restrictive measures against 26 American companies, most of which are related to the provision of services to the Pentagon aimed at protecting national interests, the statement said.

China’s sanctions against US companies

According to the announcement, the Chinese government has banned the sale of dual-use goods to 15 companies that are direct producers of weapons systems or participate in their development. The restrictions were imposed to protect China’s national sovereignty, national security, and development interests, as well as on the basis of the law on countering foreign sanctions, China said.

Among them are General Dynamics Land Systems, one of the largest manufacturers of ground combat vehicles in the United States and in the world; Shield AI, an aerospace technology company that develops control systems for combat aircraft based on artificial intelligence technologies, drones, and other aviation technologies; and Leidos, which provides scientific, engineering, system integration, and technical services and, together with the IT department of one of the major contractors of the US Department of Defense, Lockheed Martin, creates the largest IT service provider in the US defense industry.

“Exports of Chinese-made dual-use items to the above 15 U.S. companies are prohibited; any related export activities currently in progress must cease immediately,” the Commerce Department said in an announcement.

“Exports of dual-use items to the above 15 U.S. organizations are prohibited; any related export activities must cease immediately,” the statement said.

Under special circumstances, an export operator may apply to the Ministry of Commerce of the People’s Republic of China for a special permit to supply goods subject to the ban.

China’s second package of countermeasures includes 10 more American firms, mainly in the aviation and radio engineering industries, which also provide services to the US military. These companies are prohibited from engaging in import and export activities related to China, as well as from making new investments in China.

The third package affected the American biotechnology company Illumina, which manufactures and sells integrated systems for analyzing genetic variations in the genome and analyzing biological processes occurring in cells. This company is prohibited from supplying gene sequencers used in biotechnology research to China.

All three restrictive packages come into force on the day of publication, i.e. March 4.

Trump’s sanctions against China

U.S. President Donald Trump doubled duties on goods from China by executive order on March 3, accusing Beijing of failing to curb the flow of drugs to the United States. Trump raised tariffs on imports from China from 10% to 20%.

Trump emphasized that the Chinese government’s failure to take steps to stop the constant flow of synthetic opioids, including fentanyl, to the United States poses an extraordinary threat to the national security, foreign policy, and economy of the United States.

After Donald Trump imposed a 10% tariff on Chinese imports to the United States in late January, Beijing announced a 15% duty on certain types of coal and liquefied natural gas and a 10% duty on crude oil, agricultural machinery, heavy-duty vehicles, and pickup trucks.