China imposes sanctions on 56 U.S. firms in tech and trade dispute retaliation

China has escalated its trade dispute with the United States by imposing retaliatory sanctions on 56 American companies. The Ministry of Commerce in Beijing announced on Monday that ten firms with ties to the U.S. military have been added to an export control list. This move prohibits Chinese exporters from selling so-called dual-use goods, which can be utilized for both civilian and military purposes, to these companies. Existing export deals must be halted immediately.

An additional 46 U.S. companies are subject to import restrictions imposed by the Ministry of Finance. Chinese buyers are now forbidden from purchasing products from these manufacturers, although U.S.-funded companies operating in China are exempt. This action follows a recent move by Washington, which placed several Chinese conglomerates on a list of companies allegedly supporting the Chinese military.

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some countries use national security as a pretext for trade restrictions.

The U.S. government's updated list, released on June 8, included prominent Chinese entities such as e-commerce giant Alibaba, search engine operator Baidu, and electric vehicle manufacturers BYD and NIO. China's Vice Premier Ding Xuexiang criticized the U.S. practice of using national security as a pretext for trade restrictions, warning that such actions could lead to geopolitical conflicts and increased protectionism, potentially fragmenting global industrial and supply chains. He emphasized the need for dialogue to prevent economic and trade issues from being used as leverage.

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economic and trade policy issues should not be used as leverage.