US brings more trouble for Chinese technology companies; China responds with vow to ‘defend national interests’

US-China

The United States has announced expanded export restrictions targeting Chinese technology firms, intensifying the long-running tech rivalry between the two nations. The new rule, issued by the US Department of Commerce, broadens existing sanctions to include subsidiaries owned 50 percent or more by companies already listed on the Entity List. Washington says the measure aims to prevent sanctioned firms from using complex ownership structures to access restricted technologies.

New restrictions and affected companies
The expanded controls cover key Chinese firms, including Huawei, memory chipmaker Yangtze Memory Technologies Co. (YMTC), and drone manufacturer DJI. The regulation also affects entities involved in artificial intelligence, semiconductors, and advanced robotics. The US government said the move addresses a critical gap that previously allowed restricted companies to continue receiving sensitive technologies through affiliates.

The Commerce Department explained that the updated rule is designed to “strengthen the integrity of export controls and prevent circumvention.” Analysts estimate the decision could impact thousands of entities tied to Chinese industrial and defence sectors.

China’s reaction
Beijing reacted sharply to the announcement. China’s Ministry of Commerce denounced the move as “economic coercion” and vowed to “defend national interests through appropriate measures.” In an official statement, a ministry spokesperson said, “Washington’s actions threaten global industrial stability and expose its intent to contain China’s technological progress.”

The escalation comes just weeks before a scheduled meeting between US and Chinese leaders during the APEC summit in South Korea, potentially heightening tensions. The latest restrictions add to Washington’s existing curbs on more than 1,000 Chinese firms accused of posing national security risks.

Experts warn that the tightening measures could further disrupt global supply chains and complicate international cooperation in advanced technologies. “This is no longer just about trade — it’s about technological sovereignty,” said a policy analyst at the Center for Strategic Technology Studies.