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China imposed export controls on US firms ahead of Xi's Washington visit, signaling retaliatory trade measures.

Tit-for-tat export restrictions will widen supply-chain fragmentation and accelerate hyperscaler and chipmaker efforts to diversify away from contested geographies.
Trade pressSlicast · August 6, 2026 · US · Source: Google News
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China has announced a series of economic measures against the United States, including controls on drone exports and a ban on dealings with six American entities, in response to recent restrictions imposed by Washington.

The move comes amid simmering tensions between the world's two biggest economies ahead of an expected visit by Chinese President Xi Jinping to the US in September, despite signs of warming ties during his meetings with US President Donald Trump in Beijing in May.

China's Commerce Ministry said the sanctions are a response to recent US actions, including a ban by the US Federal Communications Commission (FCC) on imports of Chinese drones and a decision by the Department of Homeland Security to add 43 Chinese companies to the Uyghur Forced Labor Prevention Act entity list, preventing imports of goods made with forced labour. The measures "seriously violate the important consensus reached by the two heads of state and severely damage China's legitimate rights and interests," the ministry said in a statement, adding that "China has no choice but to take necessary countermeasures in response."

Beijing said it was acting with restraint and urged Washington to scrap its measures and cease its "erroneous practices," warning of further sanctions if the US rolls out new restrictions against China.

The specific measures include requiring case-by-case reviews of exports of unmanned aerial vehicles (UAVs), their key components and related technologies, which fall on a list of export-controlled dual-use items that can serve both civilian and military purposes. Six US entities have been banned from engaging in trade or other activities with entities in China, including Applied DNA Sciences and the non-governmental group Human Rights in China. China separately banned Compliance Testing LLC from doing business in the country, accusing it of working with the FCC to harm "China's sovereignty and security."

The Commerce Ministry also said it was investigating the possible national security impact of imported printing software and office equipment, though it did not name any affected companies. Additionally, China's State Administration for Market Regulation said US companies that carry out follow-up factory inspections on behalf of Chinese entities for CCC certification can no longer issue those certifications. Under the new rule, US makers of certified electronics will need to hire auditors based outside the US or rely on other non-US designated bodies instead. CCC certification is meant to ensure electronic products meet basic safety standards.

The FCC banned imports of new Chinese drones in December, later revising the ban to allow some models through. Last week, the regulator also announced bans on imports of new foreign-made humanoid robots and power inverters, citing national security risks—a move that in effect targets China.

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China imposed export controls on US firms… · Slicast