Tensions rise: The US and China face deepening trade wars, impacting global markets with new tariffs and export bans. Credit: Shutterstock, Engineer Studio
Tensions are rising again as Beijing targets US goods, businesses and key material in its latest trade retaliation.
A few days after Donald Trump announced new tariffs on Chinese goods, China wiped out all US imports, rare earth elements export restrictions and returned favors with a 34% tariff in favor of an increase in blacklists of American companies prohibited from doing business within the country.
The new measures, scheduled to begin on April 10, show a more severe stance from China in trade disputes that go far beyond simple tariffs.
China is restricting rare earth exports in its warning to us
China has locked down exports of several rare earth elements. It’s all kinds of different things, from smartphones and electric cars to fighter jets. Materials such as samarium, gadolinium, dysprosium and lutetium will no longer be exported freely to the United States from April 4th.
The Commerce Department said the move was about national security, but it also came across as a sharp warning. China is almost exclusively on many of these factors, and pulling back access could hit the US where it hurts, whether it’s tech, defense, innovation.
China targets US agriculture and defense companies
China is not halted by rare earths. American grain and poultry exports have also been a hit, and Chinese customs have suddenly stopped importing sorghum, poultry and bone meal from several US companies.
At the same time, 16 American companies are being slapped with new restrictions. This means that they cannot receive exports from China, which can be used for both civilian and military purposes.
Among them are Skydio Inc. and Brinc Drones. Beijing accused them of selling weapons to Taiwan, the red line of China. Another 11 companies have been added to what is known as the “Untrusted Entities” list. This allows the government to ban trade and investment entirely.
China begins investigating US medical technology imports
The Chinese government has also launched a damping prevention investigation into CT medical imaging tubes coming from the US and India. Officials say imports may be overturning Chinese manufacturers and are currently considering the broader competitiveness of the medical devices sector. This is a move that suggests that China is expanding from agriculture and high-tech to medical devices now.
Companies on both continents are currently experiencing an impact as each side raises interests. It’s clear if this latest round round will cool down the TIT-for-for measures or if there’s no more spirals to be seen, but one thing is clear. Neither Washington nor Beijing has retreated.
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