China retaliates against US with drone controls, sanctions

China announced a series of economic measures Wednesday against the United States, including controls on exports of drones to the US and a ban on dealings with six American entities, in response to recent restrictions imposed by Washington.

Tensions are simmering between the world’s two biggest economies ahead of an expected visit by Chinese President Xi Jinping to the US in September, despite signs of warming ties during his meetings with US President Donald Trump in Beijing in May.

The Commerce Ministry said the sanctions are in response to recent moves from the US, including a ban by the US Federal Communications Commission on imports of Chinese drones, and the Department of Homeland Security’s decision to add 43 Chinese companies to the Uyghur Forced Labour Prevention Act entity list to prevent imports of goods made with forced labour.

The “measures seriously violate the important consensus reached by the two heads of state and severely damage China’s legitimate rights and interests. China has no choice but to take necessary countermeasures in response,” the ministry said in a statement. It emphasised that China was acting with restraint and urged the US to scrap its measures against Beijing and cease its “erroneous practices.” It also warned of further sanctions if the US rolls out new restrictive measures against China.

Beijing is requiring reviews on a case-by-case basis of exports of unmanned aerial vehicles, their key components and related technologies that are on a list of export-controlled dual-use items that can serve both civilian and military purposes.