In November, China imposed severe economic sanctions on 28 US defense contractors, prohibiting them from engaging in trade in dual-use products and technologies. The blacklist includes industry giants such as General Dynamics, Boeing Defense, Space & Security, Lockheed Martin and Raytheon Missiles & Defense. China's Ministry of Commerce solemnly stated that this move is aimed at resolutely safeguarding national security and faithfully fulfilling the solemn commitment of international non-proliferation, and emphasized that all measures are implemented within the strict framework of China's export control laws. At the same time, the Ministry of Commerce also gave a "reassurance" to compliant foreign entities, but the outside world still cannot help but speculate whether this indicates that the long-lasting trade competition between China and the United States is quietly escalating.
Notably, ten companies have been labeled as 'unreliable entities' by China due to their sale of weapons to Taiwan. Beijing firmly claims that Taiwan is an inseparable part of its territory, and this classification undoubtedly imposes stricter restrictions on these companies, completely cutting off their potential for trade or investment activities in China. Even more severely, the executives of these companies are banned from stepping onto Chinese territory, and their residency and work permits are instantly invalidated. The Ministry of Foreign Affairs strongly condemns the US for undermining China's sovereignty and disrupting peace and stability in the Taiwan Strait, pointing out that such weapon sales seriously violate the One China principle and international agreements between China and the US.
This round of sanctions was swiftly enacted after the Biden administration just approved a defense aid plan worth up to $567 million aimed at strengthening Taiwan's military defense capabilities. Although the US repeatedly reaffirms its firm commitment to providing security assistance to Taiwan, Beijing's response has become increasingly tough. From restricting rare mineral exports to targeting weak links in the US supply chain, Beijing is using its newly established legal tools to effectively counter Washington's longstanding trade restrictions and sanctions against Chinese companies.
As the geopolitical tension between China and the US continues to escalate, this economic tit-for-tat increasingly highlights the strain and delicacy of bilateral relations. Particularly as Donald Trump, who holds a strong critical stance towards China, may return to the White House, Beijing seems prepared to take more radical measures to defend its interests and maintain its global influence. This series of events undoubtedly sends us a warning: the economic and trade friction between China and the US may face more severe challenges and tests.
Let us pay close attention to the subsequent developments of the Sino-US economic and trade friction, and hope that both sides can uphold a rational and pragmatic attitude, seeking mutually beneficial solutions through dialogue and cooperation.
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