China Sanctions 18 US Defense Firms Amid Escalating Trade Tensions

China targets 18 US defense firms as trade war spirals out of control

It also placed another six firms on its "unreliable entities" list, which enables Beijing to take punitive action against foreign entities, according to ministry statements. In its latest round of restrictions, China has targeted U.S. firms that supply the Pentagon and other federal agencies. This brings the total number of American companies penalized by Beijing in tit-for-tat over Trump tariffs to 60. The new measures take effect on Thursday. Beijing said it added the six U.S. companies to its unreliable entities list because of their involvement in arms sales or military ties with Taiwan. These firms will be banned from China-related import and export activities, as well as investing in the country, it said. "In recent years, the six companies, including Shield AI and Sierra Nevada Corporation, have... seriously jeopardised China's national sovereignty, security and development interests," the commerce ministry said in a statement. Shield AI, based in California, develops artificial intelligence-driven aircraft, with a focus on military drones. Meanwhile, Sierra Nevada Corporation -- a longtime contractor for the Pentagon and NASA -- was chosen last year by the U.S. Army to transform a fleet of business jets into advanced surveillance aircraft.

China sanctions 18 US defense firms after Trump imposes tariffs

China sanctioned 18 US defense firms and raised tariffs after Trump imposed a 50% duty on Chinese goods, escalating tensions over trade and Taiwan. China's commerce ministry slapped restrictions on more than a dozen US defence firms on Wednesday after President Donald Trump made good on his threat to impose an additional 50% tariff on Chinese imports. Beijing added 12 US companies to a control list that prohibits exports of dual-use items and another six to its "unreliable entities" list, which allows Beijing to take punitive actions against foreign entities, according to commerce ministry statements. China also announced it would raise its levies on US goods by 50%, adding to the 34% increase previously announced and due to be implemented on Thursday, to bring the total additional duties on U.S. imports to 84%. The trade restrictions, also effective Thursday, are mainly targeted at US firms that supply the Pentagon and federal government agencies. In the case of the unreliable entities list, Beijing said the six US firms were added over arms sales or military cooperation with Taiwan and would be banned from China-related import and export activities, as well as investing in the country. "In recent years, the six companies, including Shield AI and Sierra Nevada Corporation, have... seriously jeopardised China's national sovereignty, security and development interests," the commerce ministry said in a statement. California-based Shield AI specializes in artificial intelligence-powered aircraft, especially military drones, while long-time Pentagon and NASA contractor Sierra Nevada Corporation last year was selected by the US Army to convert a fleet of business jets into cutting-edge spy planes. Affected firms have little business in China While the affected firms have little to no business in China, according to a Reuters review of corporate records, the new restrictions could potentially disrupt their supply chains. When US drone manufacturer Skydio was sanctioned by Beijing in October over arms sales to democratically governed Taiwan, which China claims as part of its territory, that quickly cut off the company's supply of batteries, according to the Financial Times. But even as Beijing retaliates against Trump's tariffs by targeting US imports and companies, it has sought to include in its public messaging reassurances aimed at foreign firms operating in China, or looking to invest in the country. Stay updated with the latest news! Subscribe to The Jerusalem Post Newsletter Subscribe Now In a statement explaining the new additions to the unreliable entities list on Wednesday, the commerce ministry concluded by stating that the list only applied to "a very small number" of firms and that "foreign entities that are honest and law-abiding have nothing to worry about."

China slaps restrictions on 18 US firms over Trump tariffs

BEIJING (Reuters) -China's commerce ministry slapped restrictions on more than a dozen U.S. defence firms on Wednesday after President Donald Trump made good on his threat to impose an additional 50% tariff on Chinese imports. Beijing added 12 U.S. companies to a control list that prohibits exports of dual-use items and another six to its "unreliable entities" list, which allows Beijing to take punitive actions against foreign entities, according to commerce ministry statements. China also announced it would raise its levies on U.S. goods by 50%, adding to the 34% increase previously announced and due to be implemented on Thursday, to bring the total additional duties on U.S. imports to 84%. The trade restrictions, also effective Thursday, are mainly targeted at U.S. firms that supply the Pentagon and federal government agencies. In the case of the unreliable entities list, Beijing said the six U.S. firms were added over arms sales or military cooperation with Taiwan and would be banned from China-related import and export activities, as well as investing in the country. "In recent years, the six companies, including Shield AI and Sierra Nevada Corporation, have... seriously jeopardised China's national sovereignty, security and development interests," the commerce ministry said in a statement. California-based Shield AI specializes in artificial intelligence-powered aircraft, especially military drones, while long-time Pentagon and NASA contractor Sierra Nevada Corporation last year was selected by the U.S. Army to convert a fleet of business jets into cutting-edge spy planes. While the affected firms have little to no business in China, according to a Reuters review of corporate records, the new restrictions could potentially disrupt their supply chains. When U.S. drone manufacturer Skydio was sanctioned by Beijing in October over arms sales to democratically governed Taiwan, which China claims as part of its territory, that quickly cut off the company's supply of batteries, according to the Financial Times. But even as Beijing retaliates against Trump's tariffs by targeting U.S. imports and companies, it has sought to include in its public messaging reassurances aimed at foreign firms operating in China, or looking to invest in the country. In a statement explaining the new additions to the unreliable entities list on Wednesday, the commerce ministry concluded by stating that the list only applied to "a very small number" of firms and that "foreign entities that are honest and law-abiding have nothing to worry about". (Reporting by Eduardo Baptista, Yukun Zhang and Ryan Woo; Editing by Bernadette Baum and Alex Richardson)