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China imposes drone export curbs, bans six US entities before Xi visit

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China imposes drone export curbs, bans six US entities before Xi visit

China imposed export controls on drones and banned six American organizations from doing business with Chinese entities, citing retaliation for US trade restrictions. The measures, announced by the Ministry of Commerce, come ahead of President Xi Jinping's expected visit to Washington and include blocking US companies from conducting mandatory product certifications.

Export Control Measures

China's Ministry of Commerce announced individual export checks for drones, their key components, and related dual-use technologies that could be used for military purposes. The restrictions apply to items that serve both civilian and military functions. The ministry framed the move as a necessary response to US actions, including the Federal Communications Commission's curbs on Chinese drone imports and the designation of dozens of Chinese companies as tied to forced labor risks. Beijing warned that further sanctions could follow if Washington continues to impose new technology restrictions.

Impact on US Firms

Six American organizations, including Applied DNA Sciences and Human Rights in China, are now barred from doing business with Chinese companies. Compliance Testing LLC faces separate restrictions after Beijing accused it of working with US regulators to harm Chinese interests. Additionally, US companies are blocked from conducting inspections for China's mandatory CCC certification, forcing them to use auditors from other countries to access the Chinese market.

What's Next

Beijing warned it may expand sanctions if Washington continues its restrictions on Chinese technologies. It remains unclear how the US will respond ahead of Xi's planned visit to Washington, which was expected to ease trade tensions.

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China imposes drone export curbs, bans six US entities before Xi visit