China Hits Back: US Firms Face New Business Curbs

Beijing has enacted new business restrictions targeting seven U.S. entities, marking a significant escalation in ongoing trade and technology disputes with the United States. These measures, introduced on Wednesday, also include heightened scrutiny for drone exports to the U.S. and a halt to the use of U.S.-based agencies for certain product-certification factory inspections.

Among the restricted entities is Compliance Testing, a laboratory and certification firm accused of aiding U.S. Federal Communications Commission measures detrimental to Chinese interests. Similar bans on dealings were imposed on six other U.S. organizations, including Applied DNA Sciences and the Responsible Business Alliance, which Beijing claims supported U.S. sanctions related to Xinjiang. These actions prohibit Chinese entities and individuals from engaging in transactions or cooperation with the listed companies.

Further tightening controls, China will now conduct case-by-case reviews for exports of controlled drones, key drone components, and related technologies to the United States. While not a complete ban, this move complicates licensing and could impact U.S. buyers relying on Chinese-made drone parts. These retaliatory measures reflect a broader pattern where China counters U.S. restrictions on its technology and market access.