China Takes Intensive Countermeasures Against Biden’s “China Sanction Week”
The past week is, to some extent, a “China Sanction Week” for the Biden administration. Ithas intensively introduced a series of sanctions measures against China, including but not limited to:
Issuing the “AI Diffusion Export Control Framework” imposing global restrictions on China’s access to AI computing power;
Introducing regulations restricting TSMC from tape-out for Chinese company-designed chips;
Adding 25 Chinese companies to the Entity List in two batches (including the Chinese large-model company Zhipu AI);
Imposing an import ban on Chinese EVs and their electronic components; and it announced that 39 Chinese firms would be added to the UFLPA Entity List.
Starting yesterday, China began to undertake a series of countermeasures. In the last few days of Biden’s term, American sanctions and China’s responses have once again escalated to a climax.
China’s Foreign Ministry and Ministry of Commerce spokespeople have both lodged protests in response to U.S. sanctions.
Ministry of Commerce Spokesperson’s Statement on Recent U.S. Trade Restriction Measures Against China
For some time now, using so-called national security and other grounds, the Biden administration has rushed through numerous China-related trade restriction measures during its remaining time in office, continuously escalating semiconductor export controls against China, restricting the use of China’s connected-vehicle software, hardware, and complete vehicles in the United States, initiating national security reviews of ICTS (information and communications technology and services) targeting drone systems from China and other countries, and sanctioning multiple Chinese companies. In addition, it has added multiple Chinese entities to its “Notorious Markets” list. China strongly opposes and is highly dissatisfied with this.
These measures by the Biden administration seriously infringe upon the legitimate rights and interests of Chinese companies, severely disrupt market rules and the international economic and trade order, and seriously threaten the stability of global industrial and supply chains. They harm the interests of businesses worldwide, including those in the United States. Many major U.S. companies and industry associations have openly expressed their opposition to certain measures; some countries and regions also express a lack of understanding or agreement. Such practices are a prime example of economic coercion and bullying, neither rational nor responsible. They not only undermine Sino–U.S. economic and trade relations but also severely affect the stability and development of the global economy.
The Biden administration says one thing but does another. Sanctions, containment, and suppression cannot halt China’s progress; they will only strengthen China’s confidence and capability in achieving self-reliance, self-strengthening, and technological innovation. China will take measures to resolutely safeguard its sovereignty, security, and development interests.
MFA Spokesperson Guo Jiakun
Regarding the recent frequent introduction of China-related trade and technology restrictions by the Biden administration, the Ministry of Commerce has already stated its solemn position. China has lodged stern representations with the United States. The U.S. has generalized the concept of national security, politicized, weaponized, and instrumentalized economic and technological issues, and resorts to sanctions at every turn.
This practice seriously harms the normal rights and interests of businesses from China and other countries, disrupts market rules and the international economic and trade order, greatly impedes the stability of global production and supply chains, and undermines the common interests of businesses worldwide, including American ones. Such behavior is a typical example of economic coercion and brute-force bullying. China is very dissatisfied and firmly opposed.
I would stress that no sanctions or suppression can stop China’s development progress, and no bullying or coercion can waver China’s determination to be self-reliant. China will take resolute measures to firmly safeguard the legitimate rights and interests of Chinese companies and individuals, and defend its own sovereignty, security, and development interests.
January 14: China Adds Seven U.S. Companies Including Inter-Coastal Electronics to the Unreliable Entity List
Announcement on Taking Unreliable Entity List Measures Against Seven U.S. Companies Including Inter-Coastal Electronics
Issuing Body: Bureau of Security and Control
Document No.: Announcement [2025] No. 2 of the Unreliable Entity List Working Mechanism
Issue Date: January 14, 2025Unreliable Entity List Working Mechanism
Announcement
2025 No. 2To safeguard national sovereignty, security, and development interests, pursuant to relevant laws such as the Foreign Trade Law of the People’s Republic of China, the National Security Law of the People’s Republic of China, and the Anti-Foreign Sanctions Law of the People’s Republic of China, and in accordance with Articles 2, 8, and 10 of the Provisions on the Unreliable Entity List, the Unreliable Entity List Working Mechanism has decided to add Inter-Coastal Electronics, System Studies & Simulation, IronMountain Solutions, Applied Technologies Group, Axient, Anduril Industries, and Maritime Tactical Systems to the Unreliable Entity List for their participation in arms sales to the Taiwan region, and to impose the following measures:
Prohibit these companies from engaging in import and export activities related to China;
Prohibit these companies from making new investments within the territory of China;
Prohibit senior management of these companies from entering China;
Disallow or cancel the work permit, stay, or residence qualification in China for senior management of these companies.
Matters not covered in this announcement shall be executed in accordance with the Provisions on the Unreliable Entity List.
This announcement takes effect as of the date of publication.Unreliable Entity List Working Mechanism
(Seal of the Ministry of Commerce on its behalf)
January 14, 2025
January 15: China Again Adds Four U.S. Companies Including Pacific Rim Defense to the Unreliable Entity List
Announcement on Taking Unreliable Entity List Measures Against Four U.S. Companies Including Pacific Rim Defense
Issuing Body: Bureau of Security and Control
Document No.: Announcement [2025] No. 3 of the Unreliable Entity List Working Mechanism
Issue Date: January 15, 2025Unreliable Entity List Working Mechanism
Announcement
2025 No. 3To safeguard national sovereignty, security, and development interests, pursuant to relevant laws such as the Foreign Trade Law of the People’s Republic of China, the National Security Law of the People’s Republic of China, and the Anti-Foreign Sanctions Law of the People’s Republic of China, and in accordance with Articles 2, 8, and 10 of the Provisions on the Unreliable Entity List, the Unreliable Entity List Working Mechanism has decided to add Pacific Rim Defense, AEVEX Aerospace, LKD Aerospace, and Summit Technologies Inc. to the Unreliable Entity List for their participation in arms sales to the Taiwan region, and to impose the following measures:
Prohibit these companies from engaging in import and export activities related to China;
Prohibit these companies from making new investments within the territory of China;
Prohibit senior management of these companies from entering China;
Disallow or cancel the work permit, stay, or residence qualification in China for senior management of these companies.
Matters not covered in this announcement shall be executed in accordance with the Provisions on the Unreliable Entity List.
This announcement takes effect as of the date of publication.Unreliable Entity List Working Mechanism
(Seal of the Ministry of Commerce on its behalf)
January 15, 2025
January 16: the Ministry of Commerce hinted that China may subject more “strategic resources” to export controls.
Previously, the Ministry of Commerce already imposed export controls on gallium, germanium, antimony, and graphite.
Ministry of Commerce Spokesperson Answers Reporter's Questions on Issues Related to Dual-Use Items Export Control
A reporter asked whether the Ministry of Commerce would add more dual-use items in the strategic resources domain and strengthen export controls in 2025.
Answer: The Chinese side places great importance on export control work, closely following international best practices to continuously strengthen and refine its export control system, and adjusting and improving the dual-use items export control list based on actual circumstances. As for certain strategic resources with clearly dual-use characteristics (military and civilian), China will fully refer to international norms, better fulfill its international obligations such as nonproliferation, and—where necessary to maintain national security—add relevant strategic resources to the export control list in accordance with the law and at an appropriate time.
China’s decision to impose export controls on related items reflects the responsible stance taken by the Chinese government as a major power. Meanwhile, China remains committed to advancing a high level of openness and is willing to strengthen dialogue and cooperation with relevant countries and regions in the field of export controls, so as to maintain the stability of global industrial and supply chains.
January 16: China Announces Preliminary Findings of Its Unreliable Entity List Investigation Into PVH, a U.S. Textile Giant, Alleging “Improper Conduct Involving Xinjiang,” and Plans Another Meeting With PVH
Spokesperson of the Ministry of Commerce Answers Reporter’s Questions Regarding Unreliable Entity List
Q: On September 24, 2024, China announced that it would begin an Unreliable Entity List investigation into the U.S. company PVH Group. Could you provide an update on the investigation?
A: The Unreliable Entity List Working Mechanism is proceeding with the investigation of the U.S. PVH Group in accordance with the law. Since filing the case, we have repeatedly listened to PVH Group’s representations and defenses, and examined written materials they submitted. Preliminary findings indicate that PVH Group has engaged in improper conduct involving Xinjiang. The mechanism’s office plans to meet with PVH Group again in the near future. The final results of the investigation will be made public in accordance with the law.
China has always exercised caution in handling issues related to the Unreliable Entity List and targets only a very small number of foreign entities that threaten our national security. Law-abiding foreign entities have no need to worry. The Chinese government, as always, welcomes enterprises from around the world to invest and do business in China, and is committed to providing a stable, fair, and predictable business environment for law-abiding foreign companies in China.
January 16: China’s Ministry of Commerce Hints at Anti-Dumping and Countervailing Investigations Into Mature-Node Chips Exported From the U.S. to China
Spokesperson of the Ministry of Commerce Answers Reporter’s Questions Regarding the Domestic Semiconductor Industry’s Reflections on Low-Priced U.S. Mature Node Chip Imports
Q: It has been reported that China’s mature-node chip industry is facing unfair competition challenges from imported U.S. products, and there is a request for anti-dumping and countervailing investigations. Has the Ministry of Commerce received such an application? Could you provide more details?
A: The domestic semiconductor industry has reported concerns that for some time, due to generous government subsidies from the Biden administration, U.S. firms have gained an unfair competitive edge and are exporting related mature-node chips at low prices to China, harming the legitimate rights and interests of China’s domestic industry. The domestic industry’s concerns are valid, and they have the right to request trade remedy investigations.
I want to emphasize that the investigating authority will handle any applications or demands from the domestic industry following relevant Chinese laws and regulations, in compliance with WTO rules, and will initiate investigations in accordance with the law.
The China Semiconductor Industry Association Issues a Statement
Support for All Semiconductor Enterprises (Both Domestic and Foreign) Operating in China to Protect Their Legitimate Rights Under WTO Rules
Recently, industry stakeholders have informed China’s Ministry of Commerce that certain segments of the domestic mature-node semiconductor industry face unfair competition from U.S. imports, and have called for anti-dumping and countervailing investigations. Over some time, the Biden administration has provided enormous subsidies to its domestic chip industry, granting U.S. companies an unfair market advantage and enabling them to export chips to China at low prices, significantly harming the legitimate rights and interests of China’s domestic industry.
In August 2022, President Biden officially signed the CHIPS and Science Act, planning to allocate up to US$280 billion through subsidies, loan guarantees, and tax incentives, to vigorously support expansion of domestic semiconductor manufacturing capacity in the United States. This measure seriously contradicts basic market-economy principles and has had a profound and significant impact on the global semiconductor industrial chain. It has caused wide-ranging concerns in the global semiconductor industry, including in China, and exacerbated instability in the global semiconductor industry.
The stable development of the semiconductor industry depends on a fair competitive market environment. We firmly support both domestic and foreign semiconductor companies operating in China, encouraging them to safeguard their legitimate rights and interests in accordance with WTO rules. Meanwhile, we urge all enterprises to use continuous technological innovation, strengthen industrial chain synergy, and actively engage in international collaboration as effective means to jointly propel the semiconductor industry into a new phase of high-quality development, and work together to establish a more open, fair, and orderly market. This will lay a solid foundation for the thriving progress of the global semiconductor industry.
The China Semiconductor Industry Association has consistently adhered to its service mission, providing comprehensive support and assistance to all colleagues dedicated to developing China’s semiconductor industry. We trust that in handling anti-dumping and countervailing applications and investigations from the industry, the Chinese government will maintain the principles of fairness and justice, creating a healthy, orderly market environment for the sector’s advancement.
January 15: Foreign Ministry Spokesperson Protests U.S. Ban on Chinese Connected Vehicle Software and Hardware
AFP Reporter: Yesterday, the U.S. released a final rule prohibiting the use of Chinese technology in the American market on national security grounds. The rule aims to restrict automotive software and hardware originating from China or Russia. What’s the Ministry of Foreign Affairs’ comment?
Spokesperson Guo Jiakun: For specifics, please consult the relevant authority. I’d like to point out that, under the pretext of national security, the U.S. is restricting the use of Chinese connected vehicle software, hardware, and entire automobiles in the United States without any factual basis. This action disrupts normal economic and commercial cooperation for businesses and violates market economy and fair competition principles—typical protectionism and economic coercion. China firmly opposes it. We urge the U.S. to end the erroneous practice of overextending national security and to cease its unwarranted suppression of Chinese companies. China will take necessary measures to resolutely safeguard its legitimate rights and interests.
January 16: The China Association of Automobile Manufacturers Issues a Statement Strongly Opposing the Biden Administration’s Ban on Chinese Intelligent Connected Vehicle Software and Hardware
Strongly Opposing the Biden Administration’s Rule Prohibiting the Use of Chinese Intelligent Connected Vehicle Software and Hardware
On January 14, 2025, invoking so-called national security, the Biden administration released the rule “Ensuring the Security of Information and Communications Technology and Services Supply Chain for Connected Vehicles,” prohibiting transactions involving Chinese individuals or entities in the design, development, manufacture, or supply of intelligent connected vehicles and related systems’ hardware and software in the United States. In response, the China Association of Automobile Manufacturers expresses its firm opposition.
In recent years, China’s intelligent connected NEV (new energy vehicle) industry has steadily grown, earning broad consumer support for its competitiveness. Correspondingly, relevant software and hardware technologies have become more widely used across the global automotive industry chain, making a positive contribution to developing the global intelligent connected vehicle market. The development of these relevant fields in China will not be disrupted by external noise. China and the United States are both major nations advancing intelligent connected vehicles; mutual cooperation is essential for the shared benefits of both sides. The Biden administration’s rule seriously disrupts global automotive collaboration, undermines the shared interest of countries in developing their automotive sectors, severely violates international trade rules, endangers the stability of global supply chains, and hinders the creation of a secure, shared, and transparent global automotive industry system.
The China Association of Automobile Manufacturers strongly opposes the Biden administration’s wrong actions that undermine the global intelligent connected vehicle industry ecosystem. We believe the unilateral administrative restrictions taken by the Biden administration, forcibly severing economic and industrial cooperation with specific countries, not only destroy fair competition in the global automotive market but also profoundly and negatively affect the global industry chain. Ultimately, it is U.S. businesses and consumers who suffer. We call on the Biden administration to evaluate trade issues objectively and avoid politicizing or over-securitizing them, and to repeal the relevant prohibitive clauses targeting China in its rules. The global automotive industry should deepen collaboration to jointly advance a healthy and sustainable development of intelligent connected vehicles.
Technical Department of CAAM (China Association of Automobile Manufacturers)
January 16: Ministry of Commerce Announces Preliminary Anti-Dumping Measures on Imports of Co-Polymer Polyoxymethylene Originating in the U.S., EU, Taiwan Region, and Japan
Spokesperson of the Ministry of Commerce Answers Reporter’s Questions on Preliminary Anti-Dumping Ruling on Co-Polymer Polyoxymethylene Imported from the U.S., EU, Taiwan Region, and Japan
Q: The Ministry of Commerce has announced a preliminary determination in its anti-dumping investigation on co-polymer polyoxymethylene imported from the U.S., EU, Taiwan Region, and Japan, imposing provisional anti-dumping measures. Could you elaborate?
A: Following a petition from the mainland Chinese co-polymer polyoxymethylene industry, the Ministry of Commerce issued a notice on May 19, 2024, deciding to initiate an anti-dumping investigation on co-polymer polyoxymethylene imported from the U.S., EU, Taiwan Region, and Japan.
After filing, the Ministry of Commerce has always adhered to principles of fairness, justice, openness, and transparency, strictly following the relevant laws and regulations of mainland China and WTO rules. Through investigation, preliminary evidence suggests that co-polymer polyoxymethylene imported from the U.S., EU, Taiwan Region, and Japan is being dumped, causing substantial injury to the mainland Chinese co-polymer polyoxymethylene industry, and there exists a causal relationship between the dumping and the material injury. Under the relevant provisions of the Regulations of the People’s Republic of China on Anti-Dumping, on January 16, 2025, the Ministry of Commerce issued a preliminary ruling announcement, publicizing the preliminary determination and deciding to impose provisional anti-dumping measures. The margins are 74.9% for U.S. companies, 42.0% for EU companies, 3.8%–32.6% for Taiwan Region companies, and 33.9%–43.7% for Japanese companies.