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China announces trade countermeasures against U.S.

Created at 6 Aug · 4:36 AM1 source↑ Market-relevant
IN SHORT

China's commerce ministry announced a series of countermeasures against the U.S. on August 5, including tightening export controls on drones, launching a national security investigation into imported office printing and copying equipment, and imposing sanctions on six U.S. entities in response to U.S. trade sanctions.

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Key Numbers

6U.S. entities sanctioned by China
12additional U.S. entities added to China's Export Control List
34 percentinitial reciprocal tariff imposed by the U.S. on China
84 percentChina's retaliatory tariff rate increase on U.S.-origin goods
125 percentreciprocal tariff increase by President Trump
125 percentChina's retaliatory tariff rate on U.S.-origin goods

Who's Involved

China
announced trade countermeasures against the U.S.
U.S.
imposed trade sanctions and tariffs on China
He Lifeng
China's top trade official
Jamieson Greer
U.S. Trade Representative
Applied DNA Sciences
U.S. biotech company sanctioned by China
Stratum Reservoir
U.S. geoscience research firm sanctioned by China
China announces trade countermeasures against U.S.

↳ Why This Matters

China's retaliatory measures escalate the ongoing trade dispute with the U.S., potentially impacting global supply chains, technology access, and the economic stability of both nations.

Key facts

  • China announced countermeasures against the U.S. on August 5.
  • Measures include tightening export controls on drones and their components.
  • A national security investigation was launched into imported office printing and copying equipment.
  • Six U.S. entities were blacklisted and sanctioned.
  • The U.S. imposed fresh tariffs on China and 59 other countries.
  • China's top trade official expressed concern to U.S. Trade Representative Jamieson Greer.

China announced a series of trade countermeasures against the United States on August 5, responding to U.S. trade sanctions, forced labor sanctions, and national security restrictions. The measures include tightening export controls on drones and their key components to the U.S., suspending factory follow-up inspections by Chinese certification bodies, blacklisting U.S. compliance testing companies, and launching national security investigations into imports of office printers and copiers.

Beijing also imposed sanctions on six U.S. businesses, including biotech company Applied DNA Sciences and geoscience research firm Stratum Reservoir, barring Chinese organizations and individuals from engaging in relevant transactions with them. The commerce ministry stated these entities "have assisted and supported illegal U.S. sanctions related to Xinjiang."

These actions follow recent U.S. tariffs on China and 59 other countries. China's top trade official, He Lifeng, expressed "serious concern" to U.S. Trade Representative Jamieson Greer over the recent restrictions.

Further escalations occurred on April 2, 2025, when President Donald Trump issued an Executive Order imposing an additional 34 percent tariff on all imports from China. China responded on April 4, 2025, with its own retaliatory measures, including raising its retaliatory tariff rate on U.S.-origin goods from 34 percent to 84 percent, adding 12 U.S. entities to its Export Control List, and six U.S. entities to its Unreliable Entity List.

Subsequently, President Trump increased reciprocal tariffs on China to 125 percent. In response, China announced on April 11, 2025, that it raised its retaliatory tariffs on goods of U.S. origin from 84 percent to 125 percent, stating that at these levels, U.S. exports to China are effectively unmarketable.

Frequently asked questions

China announced tightened export controls on drones and their components, a national security investigation into imported office printing and copying equipment, and sanctions on six U.S. entities.

China stated the measures are in response to U.S. trade sanctions, forced labor sanctions, and national security restrictions, which Beijing claims seriously harm its legitimate rights and interests.

Among the sanctioned U.S. businesses are biotech company Applied DNA Sciences and geoscience research firm Stratum Reservoir.

The U.S. imposed fresh tariffs on China and 59 other countries, and later implemented a country-specific reciprocal tariff regime with additional tariffs.

What Happens Next

01Further tariff hikes by the U.S. may lead to additional responses from China.
02The effectiveness and impact of China's export controls on drones and components will be monitored.

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Cadence

How It Developed

China announced countermeasures against the U.S. on August 5.
Measures include tightening export controls on drones and their components.
China launched a national security investigation into imported office printing and copying equipment.
Six U.S. entities were blacklisted and sanctioned.
The U.S. imposed fresh tariffs on China and 59 other countries.
China's top trade official expressed concern to U.S. Trade Representative Jamieson Greer.
The U.S. imposed a country-specific reciprocal tariff regime with an additional 34 percent tariff on all imports from China.
China responded with a third, escalated round of retaliatory measures, including tariff increases and non-tariff measures.

Sources

T1
Business Brief (Aug. 6): China Announces Trade Countermeasures Against the U.S.Caixin Global
T2
China's Comprehensive Retaliation Against U.S. Tariffs | Insights | Holland & Knighthklaw.com
T2
China announces ‘countermeasures’ after US trade sanctions | The Daily Starthedailystar.net

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