Escalating Trade Tensions: China's Retaliation on U.S. Defense Firms

China's commerce ministry has imposed restrictions on several U.S. defense firms following heightened trade tensions due to President Trump's imposed tariffs. Beijing added to its control and 'unreliable entities' lists, affecting U.S. companies primarily dealing with military sales. The conflict highlights the ongoing trade dispute, with implications for supply chains.

Beijing's latest move in the escalating trade conflict with Washington saw the Chinese commerce ministry impose new restrictions targeting over a dozen U.S. defense companies. This decision follows President Trump's continuation of heavy tariffs on Chinese imports.

China has not only added 12 more U.S. firms to its control list but also increased its levies on U.S. goods to an 84% total. These actions predominantly affect American companies supplying the U.S. military, bringing further strain to the already tense trade relations.

The inclusion of six firms on the 'unreliable entities' list, due to connections with Taiwan, signifies China's strategic approach in addressing concerns over national sovereignty. Despite these tensions, Beijing reassures compliant foreign firms of unimpeded business operations within the country.

(With inputs from agencies.)