In response to the 34% increase in customs duties on imported goods by the US, China has imposed various sanctions on American companies. According to a statement from the Chinese Ministry of Commerce, 27 US companies have been added to export control or ban lists. Of these companies, 16 have been prohibited from exporting products with military and dual-use applications, while 11 companies have been placed on the “unreliable entity” list subject to export restrictions. The Ministry reported that the 16 US companies were added to the export control list to comply with international obligations to protect China’s national security and interests and prevent the spread of weapons. The activities of these companies in defense, aviation, drone production, intelligence, and logistics sectors will be subject to export control when dealing with China. Additionally, it was noted that 11 companies, such as Skydio and BRINC Drones, which produce unmanned aerial vehicles, were placed on the “unreliable entity” list due to their technology collaboration with Taiwan, a region with sovereignty disputes with China.

Furthermore, the Ministry has initiated anti-dumping and competition investigations into certain imported medical tomography tube products from the US and India, as well as the general importation of such products. Meanwhile, China’s State Administration for Market Regulation launched an investigation into the China subsidiary of the US multinational chemical company Dupont for suspected violations of anti-monopoly laws. Additionally, the General Administration of Customs in China revoked export permits for winged poultry products and broomcorn from 6 US companies.

China’s actions followed President Donald Trump’s announcement in the US to introduce an additional 34% customs tariff on China under the “mutual tariff” framework. The Trump administration stated that in addition to a 10% base tariff imposed on China, an extra 24% “mutual tariff” would bring the total additional customs tariff to 34%. With these new tariff increases, the minimum customs duty imposed by the US on products imported from China had risen to 54%. In response, the Beijing administration announced that it would apply an equivalent additional tariff in response to the 34% tariff increase introduced by the US under the “mutual tariff,” and had also imposed restrictions on the export of certain rare earth elements.