China targets US firms, tightens drone export controls after major FCC move

On Wednesday, China’s Commerce Ministry prohibited domestic entities and individuals from doing business with seven US entities, intensified shipment regulations and limited US agencies' role in mandatory Chinese factory compliance audits.

According to Beijing, the significant move is intended to address recent US restrictions affecting Chinese telecom operators, testing laboratories, drones, submarine cables and power inverters.

The recent announcement came after the Trump administration was planning to draft a national security measure to bar US imports of new models of Chinese data-center components. 

According to reports, department’s policy chief Elbridge Colby is leading the strategy which underlined the possible use of shorter-range tactical weapons in the event of a territorial dispute with Russia or China. 

In this connection, Beijing-based managing director at Anjura China, Alfredo Monutufar-Helu said: “This is a retaliatory move, and it's hardly a surprising one.”

“Beijing has spent the past several months building out its countermeasures toolkit.”

The significant step marks the latest escalation in US-China trade and technology tensions, while Washington is limiting restrictions on Chinese access to US technology and markets.

Given the current scenario, Beijing has imposed economic penalties on selected US entities. Beijing has clarified that the testing and certification firm had supported recent US Federal Communications measures targeting China which adversely affected Chinese companies’ lawful entitlements without elaborating.

China takes on controlled drones and related technology

China stated that controlled drones, core elements and related technology slated for the United States would undergo rigorous individual assessments without streamlined licensing.

On the contrary, Beijing also barred US base agencies from conducting factory inspections under China’s mandatory certification system inflating expenditures and timings for manufactures. 

It is crucial to note that Beijing also launched a national-security investigation into imported printing and office tools. Nonetheless, the investigation does not specify target companies but incorporated these crucial steps as part of its recent response to US actions.