Beijing and Washington’s latest tit-for-tat measures could test ties, but observers say they are little more than a “speed bump” on the road to a potential summit between presidents Xi Jinping and Donald Trump.
China’s Ministry of Commerce sanctioned seven US entities and tightened export controls on drones and related technologies on Wednesday, citing the need to “safeguard national security”.
The ministry separately launched a national security investigation into imported printing and copying office equipment with foreign-made software.
The measures are a response to Washington’s move last week to add 43 Chinese companies to its Uygur Forced Labour Prevention Act entity list. In the same week, the US Federal Communications Commission (FCC) also banned the import and sale of new foreign-made robotic devices and power inverters, sectors in which China is a global leader.
The retaliatory measures came ahead of Xi’s planned visit to Washington in September. The two countries are seeking to stabilise ties following a landmark summit between the two leaders in Beijing in May.
Dominic Chiu, a senior analyst at Eurasia Group risk advisory firm, said the latest Chinese move would heighten tensions but not derail Xi’s visit. He said Beijing’s measures were “calibrated to impose costs without breaking the truce”.
Beijing’s response signalled its willingness to escalate in a targeted way to deter Washington from rolling out further measures but at the same time indicated its willingness to engage and de-escalate, he said.