In a significant escalation of trade tensions, China has announced a fresh ban on 25 additional U.S. defense firms, further expanding its list of American companies barred from conducting economic activities within its borders.
In a press release this week, the Chinese Ministry of Commerce stated that the move aims to protect the nation’s “national sovereignty and security”. This action effectively halts existing exports, blocks imports, and prevents the affected firms from making new investments in China.
A Response to U.S. Tariffs
The announcement comes amid heightened trade disputes, as former U.S. President Donald Trump implements increased tariffs on Chinese goods. China’s latest restrictions were revealed just one day before Trump delivered a two-hour address to Congress on March 4, where he reiterated his commitment to imposing “reciprocal tariffs”.
“Whatever they tariff us—other countries—we will tariff them. That’s reciprocal, back and forth. Whenever they tax us, we will tax them. If they impose non-monetary barriers to prevent us from accessing their markets, then we will impose similar non-monetary barriers to prevent them from accessing our market,” Trump stated.
Companies Affected by the Ban
The new restrictions include 10 firms added to China’s Unreliable Entity List and another 15 placed under export control measures.
The following companies are listed as unreliable entities:
- Huntington Ingalls Industries Inc., the largest U.S. military shipbuilder
- S3 AeroDefense
- Cubic Corporation
- ACT1 Federal, a defense and space company
- TextOre and Exovera, both AI firms
- TCOM Limited Partnership
- Stick Rudder Enterprises LLC
- Teledyne Brown Engineering Inc.
Additionally, these trade restrictions continue to apply to biotech firm Illumina Inc., which China placed on its unreliable entity list last month.
Fifteen other U.S. firms have been added to the export control list, including:
- General Atomics Aeronautical Systems Inc.
- Leidos
- Gibbs & Cox Inc.
- IP Video Market Info Inc.
- Sourcemap Inc.
- Skydio Inc.
- Rapid Flight LLC
- Red Six Solutions
- Shield AI Inc.
- HavocAI
- Neros Technologies
- Group W
- Aerkomm Inc.
- General Dynamics Land Systems
- AeroVironment
A Political and Economic Backdrop
The timing of this announcement coincides with China’s annual Two Sessions Meeting, a high-profile political event where more than 5,000 delegates gather to discuss key issues, including economic strategy, foreign policy, and national security.
Geopolitical analysts anticipated that the meeting would feature strong statements on Taiwan, which Beijing considers a rogue province. China has repeatedly warned that it may resort to military action to reclaim the island.
Earlier this year, China imposed similar bans on Lockheed Martin, Raytheon, and 26 other U.S. defense and dual-use technology firms in response to Washington’s arms sales to Taiwan.
Rising Trade War Concerns
Experts warn that these latest trade measures could intensify tensions between Beijing and Washington, potentially leading to a broader trade conflict. In response to the new U.S. tariffs, China has already filed a legal complaint with the World Trade Organisation (WTO).
Before Trump’s speech, China’s foreign ministry also condemned the U.S. for imposing tariffs linked to fentanyl-related concerns. The ministry dismissed these actions as an unjust attempt to shift blame onto China, stating, “Instead of recognising our efforts, the U.S. has sought to smear and shift blame to China and is seeking to pressure and blackmail China with tariff hikes. They’ve been punishing us for helping them.”
A March 4 post on China’s state-run X (formerly Twitter) account reinforced this defiant stance: “Intimidation does not scare us. Bullying does not work on us. If war is what the U.S. wants, be it a tariff war, a trade war, or any other type of war, we’re ready to fight to the end.” As tensions continue to rise, the coming months may see further retaliatory measures from both sides, shaping the future of U.S.-China trade relations for years to come.
References
- Ministry of Commerce of the People’s Republic of China: www.mofcom.gov.cn
- U.S. Department of Commerce: www.commerce.gov
- World Trade Organization: www.wto.org
- White House Archives (Donald Trump speeches): www.trumpwhitehouse.archives.gov
