China retaliates against U.S. restrictions, halts trade with six American firms

China has escalated its trade war with the United States by implementing new economic countermeasures. The Chinese Ministry of Commerce announced stricter oversight on drone exports and a complete halt to commercial ties with six American companies.

These moves come as a direct response to recent U.S. trade and technology restrictions. Specifically, Beijing cited the U.S. Federal Communications Commission's ban on Chinese drones and the U.S. Department of Homeland Security's decision to blacklist 43 Chinese firms under the Uyghur Forced Labor Prevention Act as key triggers for its retaliatory measures.

The ministry stated that the U.S. actions violated agreements between the two nations' leaders and harmed China's legitimate rights. "China has no other option but to take the necessary counter-measures," the statement declared. Beijing also urged Washington to lift its restrictions and cease its "erroneous practices," warning of additional responses if new sanctions are imposed.

Earlier, the U.S. had introduced export restrictions on "black mass" derived from battery recycling and tungsten scrap, materials critical for defense and advanced manufacturing. The U.S. Bureau of Industry and Security imposed a one-year ban on these exports, aiming to reduce reliance on China for strategic resources. This move by the U.S. president followed concerns about supply chain security for vital metals, where China holds a significant global market share. The U.S. directive highlighted national security risks associated with supply shortages in certain metals.

In addition to trade sanctions, China has also tightened export controls on dual-use drones, their components, and related technologies, requiring case-by-case review and approval. This applies to both civilian and military applications, further intensifying scrutiny on drone exports to the U.S. Six U.S. entities, including Applied DNA Sciences Inc. and Human Rights in China, are now prohibited from trading with Chinese companies and engaging in various activities within China.