Chinese Government Adds 10 U.S. Companies to 'Blacklist'
Strategic Material Export Restrictions on Defense Firms
Additional Sanctions Imposed on Illumina, Including China Export Ban
On the 4th, China announced that as part of its 'retaliatory tariffs' against the Trump administration's decision to impose an additional '10+10%' tariff, it would impose up to a 15% additional tariff on certain U.S. products such as chicken and cotton. China also added 10 U.S. companies to its 'blacklist' and imposed export restrictions on Chinese strategic materials targeting 15 companies, including U.S. defense contractors.
Chinese State Council Issues Notice... Soybeans and Cotton Included
The Tariff Commission of the Chinese State Council announced at 1 p.m. on the 4th (China time; midnight on the 4th Eastern Time in the U.S.) that tariffs on 29 U.S. products including chicken, wheat, corn, and cotton would be increased by 15%, while tariffs on 711 products including sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products would be raised by 10%.
The retaliatory tariffs will take effect from the 10th of this month. When the U.S. first raised tariffs on China by 10% on the 4th of last month, China immediately announced retaliatory tariffs, allowing a grace period of six days before implementation; the same grace period has been set this time as well. Additionally, goods shipped before March 10 and imported into China between March 10 and April 12 will not be subject to the tariff increase.
This decision by China comes in response to the U.S. doubling tariffs on all Chinese products on the same day. It was made just hours after President Trump signed an executive order to raise tariffs to 20%, citing insufficient efforts by the Chinese government to curb fentanyl.
Previously, President Trump implemented a 10% tariff on Chinese goods on the 4th of last month. On the 28th of the same month, he warned that if China did not stop the influx of fentanyl, an additional 10% tariff would be imposed.
Expansion of 'Unreliable Entities' List... Strategic Material Export Sanctions
Non-tariff sanctions were also added. The Chinese Ministry of Commerce announced that 10 U.S. defense companies, including Tecom, S3 AeroDefense, and Textron, would be added to the 'unreliable entities' list. Furthermore, export restrictions on dual-use materials (materials that can be used for both civilian and military purposes), such as critical minerals, will be imposed on 15 U.S. defense companies including Raytheon and Gibbs & Cox. This is part of the strategic material export restriction measures.
Earlier, on the 4th of last month, China had already imposed additional sanctions preventing Illumina, which was placed on the unreliable entities list, from selling genetic sequencing products in China. At that time, Illumina was listed alongside PVH Group, a fashion company owning famous brands such as Tommy Hilfiger and Calvin Klein. Alongside the announcement of retaliatory tariffs by the State Council, the Ministry of Commerce also filed a complaint with the World Trade Organization (WTO) dispute settlement mechanism against the U.S., as it did last month.
In a statement released that morning, Ministry of Commerce spokesperson He Yadong said, "The U.S. has once again imposed an additional 10% tariff on Chinese exports to the U.S. starting from the 4th, citing issues such as fentanyl. China strongly objects and firmly opposes this and will resolutely defend its rights and interests through countermeasures."
Bloomberg News analyzed that China’s measures aim to minimize the impact on its own economy while pressuring the Trump administration by cutting off rare earth supplies and targeting U.S. companies.
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