China declared on Thursday January 2, 2025 that they would add another American company to their list of export controls to "protecting national safety and interestsIt’s okay. ”
The Chinese Xinhua agency reported that the Chinese Ministry of Commerce had stated that it would impose funds on 28 U.S. entities and besides ban exports of dual-use items to the listed companies starting on Thursday 2 January 2025. The word “double-use products” refers in this case to those which can be utilized for both civilian and military purposes.
China imposed sanctions on 10 arms companies that same day for selling military equipment to Taiwan, adding it to Chinese "lists of unreliable entitiesIt’s okay. ”
According to observers, China's decision seems to be a informing signal. The possible escalation of US policy towards China, peculiarly under Trump, will meet with a more decisive Beijing response. China will not passively tolerate action from the US administration.
The threat of not selling dual-use goods to U.S. companies listed on the stock exchange may have serious consequences. The function of China as a global manufacturing power, their participation and importance in the global supply chains should be taken into account.
It is unclear how China intends to enforce these measures and which products will be seen as “dual use“. For example, car tyres can be seen as being produced for both civilian and military use.
The decision announced last Thursday proves that Beijing is preparing to take office by President-elect Donald Trump. During his presidential campaign, Trump announced repeatedly the intention of imposing a work of up to 60% on all Chinese goods.
During his office, Donald Trump initiated a trade war with China for the first time, the intent of which was to reduce the US-friendly balance of trade with the mediate State. Biden's administration, contrary to predictions, strengthened its efforts against China, peculiarly in the area of semiconductor technologies. Everything points to the fact that upon returning to the White home Trump will want, at least declaratively, to increase force on China. Beijing in this situation decided to take ahead action.
As early as December 2024, China reported, for example, that an investigation into the US maker of Nvidia microprocessors was initiated in connection with the possible violation of Chinese antitrust rules by this company. This occurred a fewer days after Beijing imposed sanctions on 7 US companies in consequence to the sales of military equipment announced by the Washington administration to Taiwan.
According to analysts, Goldman Sachs' change in immigration, trade and fiscal policies under the Second Trump Administration will most likely be significant, but the fresh US authorities will refrain from any more drastic proposals announced during the campaign. Analysts anticipate higher customs duties to be introduced in the US on goods from China but applied point-to-point. The application of harmonised tariffs to all Chinese imports would entail economical and political risks, which Goldman Sachs said the White home would like to avoid.
Source: Nikkei Asia, CBS News
Leszek B. Glass
Email: [email protected]
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