More than two dozen U.S. companies have been hit with new restrictions from China in the ongoing trade war between Beijing and Washington.
Twenty-eight American companies were added to an export control list, which was justified to “safeguard national security and interests,” according to China’s Ministry of Commerce. Trade controls are also being applied to dual-use items, those with both civilian and military uses, which will impact companies such as Raytheon, Boeing, and Lockheed Martin, per The New York Times.
Ten companies were also added to an “unreliable entities list” for selling weapons to Taiwan. Those companies can no longer do business in China, nor can their executives even enter the country.
The move from Beijing comes just weeks before President-elect Donal Trump takes office. Trump campaigned to levy steep tariffs on imports, indicating that they could reach as high as 60% on Chinese goods entering the United States.
In 2023, Mexico overtook China as the top export market for U.S. goods. The shift came after China held the number one spot for decades but dropped its position due to weak economic conditions post-COVID’s financial fallouts.
Michael Hart, president of the American Chamber of Commerce in China, said that Beijing is typically hesitant to take any action that might impact domestic economic success.
“Normally the actions China takes do not impact companies who are benefiting China’s economy,” Mr. Hart said, per the NYT.
The latest move comes amid Beijing’s increasingly aggressive posturing. Regulators in China announced an investigation into semiconductor manufacturer Nvidia, one of the biggest U.S. tech successes in recent years.
In August 2024, Beijing announced export restrictions on the mineral antimony. The mineral is critical in semiconductors, batteries, and numerous weapons systems.
While the trade war with China kicked off during President Trump’s first term, it was expanded during the Biden Administration. In 2023, The Dallas Express reported that President Biden signed an executive order restricting American companies from investing in certain Chinese companies. Biden has also imposed bans on certain dual-use products. Most recently, his administration restricted 140 Chinese companies.