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China tightens drone export controls to US and suspends trade with six firms

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China tightens drone export controls to US and suspends trade with six firms

China's Commerce Ministry announced tightened export controls on dual-use drones destined for the United States and suspended trade with six American entities. The measures respond to Washington's recent drone ban and blacklisting of 43 Chinese firms under the Uyghur Forced Labor Prevention Act.

US Restrictions

The US Federal Communications Commission recently banned Chinese-made drones, while the Department of Homeland Security blacklisted 43 Chinese companies under the Uyghur Forced Labor Prevention Act. The Bureau of Industry and Security imposed a one-year export ban on black mass from battery recycling and tungsten scrap used in defense. President Trump also ordered new restrictions on certain metals citing national security risks.

China's Countermeasures

China's Commerce Ministry tightened drone export controls, requiring case-by-case review for US-bound drones, critical parts, and related technologies. Trade with six US entities, including Applied DNA Sciences Inc. and Human Rights in China, was suspended. Beijing warned it would take further retaliatory steps if Washington does not lift existing curbs and end 'wrongful practices'.

What's Next

President Xi Jinping is scheduled to visit the US in September, but the latest escalation casts doubt on the trip. It remains unclear whether Washington will de-escalate or impose further penalties, risking deeper trade conflict.

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China tightens drone export controls to US and suspends trade with six firms