China targets dozens of U.S. companies ahead of anticipated Trump tariffs
Source: CBS News
Updated on: January 2, 2025 / 4:21 PM EST
China on Thursday said it was adding dozens of American companies to its export control list to "safeguard national security and interests." China's Ministry of Commerce said it would impose measures on 28 U.S. entities and would also prohibit exports of dual-use items to the listed companies starting on Thursday, reported the Global Times, a Chinese daily viewed as aligned with Beijing, and the government-run Xinhua news agency. Dual-use items refers to those that can be used for either civilian or military purposes.
China also sanctioned 10 defense firms on Thursday over military sales to Taiwan, the self-governing island that China claims as its own, adding them to China's "Unreliable Entities List," the ministry said, according to AFP.
"It really does seem to be a warning shot — that escalation in U.S. policies against China, particularly under Trump, will be met with a more aggressive response," Jesse Schreger, an associate professor of Macroeconomics at Columbia Business School, told CBS MoneyWatch. "China is signaling it will not take tariffs passively."
The threat to not sell dual-use goods to listed companies could be consequential, given China's role as the world's manufacturing powerhouse, said Schreger. Unclear is how China intends to enforce the measures and which products will be viewed as dual use and therefore have their sales restricted. Tires, for instance, could be viewed as produced for both civilian and military use, he noted.
Read more: https://www.cbsnews.com/news/china-trump-tariffs/
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