Retaliating Against U.S. Sanctions! China's Ministry of Commerce Imposes Drone Export Controls and Launches National Security Probe on Office Equipment

China's Ministry of Commerce announced a series of countermeasures against U.S. sanctions on Wednesday (August 5), including tighter export controls on drone-related dual-use items destined for the U.S., adding six U.S. entities to a retaliatory blacklist, and launching for the first time a 'national security investigation into foreign trade' targeting specific imported products. These actions are widely seen as a response to the U.S.'s recent expansion of sanctions against Chinese companies.

The Ministry stated it will launch a national security investigation into 'imported office equipment with printing and copying functions that are equipped with foreign system software,' assessing the impact of such products, technologies, or services on China's national security and industrial development, while also factoring in foreign government policies and domestic demand.

Additionally, the Ministry added U.S.-based 'Compliance Testing LLC' to its retaliatory list, in response to recent restrictions imposed by the U.S. Federal Communications Commission (FCC) on Chinese tech firms. Reuters recently reported that the U.S. is considering banning imports of new Chinese-made optical transceiver modules for data centers to safeguard artificial intelligence (AI) infrastructure.

China also announced sanctions against six U.S. entities, including Applied DNA Sciences and Human Rights in China, in retaliation for U.S. sanctions on Chinese companies citing 'forced labor' in Xinjiang. Chinese organizations and individuals are now prohibited from conducting transactions or cooperation with these entities.

On July 31, the U.S. added 43 Chinese companies to the Uyghur Forced Labor Prevention Act (UFLPA) entity list—the first expansion since the Trump administration and the largest since the law took effect in 2021. China's Ministry of Commerce previously criticized the U.S. measures as baseless unilateral sanctions and pledged to take 'necessary measures' to protect the legitimate rights and interests of Chinese companies.

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Author: Dezheng