China Fights Back in Trade War, Targets U.S. Companies with New Restrictions
According to Reuters, China has struck back in the ongoing trade war with the United States by imposing new tariffs and placing restrictions on 25 U.S. companies.
These companies are accused of threatening China’s national security, though big U.S. brands were spared. Here’s a simple breakdown of four companies targeted by China, as reported by Reuters:
- Leidos Holdings: Based in Virginia, Leidos is a defense company that works on advanced weapons. In December, it won a $987 million contract to support Taiwan’s F-16 fighter jets. China added Leidos to its export control list, meaning it can no longer do business with Chinese companies.
- Gibbs & Cox: This company, bought by Leidos in 2021, designs warships. It has worked on projects for Taiwan, including anti-submarine ships. Reuters notes that this connection to Taiwan led to its inclusion on China’s export control list.
- IPVM: A surveillance research company, IPVM has published reports criticizing Chinese firm Hikvision for helping the government monitor Uyghur Muslims in Xinjiang. China denies these accusations, but IPVM’s work landed it on the export control list.
- Sourcemap: This company helps businesses track their supply chains, including checking if products like cotton come from China’s Xinjiang region. Reuters explains that Sourcemap’s role in exposing Xinjiang-linked supply chains led to its inclusion on China’s list.
Reuters highlights that China’s actions are part of its response to U.S. tariffs and policies. While China avoided targeting well-known U.S. brands, it focused on companies tied to Taiwan or those exposing issues in Xinjiang. This move shows China’s determination to push back against U.S. pressure in the trade war.
In short, as Reuters reports, China is using trade restrictions as a weapon in its fight with the U.S., targeting specific companies while avoiding a full-blown economic clash. This escalation adds more tension to an already heated trade conflict.
Credit: Reuters
https://www.reuters.com/world/china-imposes-new-curbs-us-firms-trade-row-grows-2025-03-04