China targets US firms and drone exports after FCC, Xinjiang actions

China has imposed restrictions on US agencies and entities in response to US measures targeting Chinese tech companies, escalating a cycle of trade and technology tensions between the two nations.

China has imposed a series of restrictions on U.S. agencies and other entities, saying the move was in response to recent U.S. measures involving Chinese telecom operators, testing laboratories, drones and other ‌tech items.

It also cited Washington's addition last week of more than 40 Chinese entities to its Uyghur Forced Labor Prevention Act entity list. The actions mark the latest escalation in a wider cycle of U.S.-China trade and technology tensions, in which Washington has tightened restrictions on Chinese access to U.S. technology and the U.S. market on ‌national-security and human-rights grounds.

Beijing in turn has responded with export controls on rare earths and other goods critical to U.S. manufacturing supply chains, as well ‌as sanctions on designated U.S. companies it believes to have aided or lobbied Washington against its interests. BUSINESS RESTRICTIONS

Beijing on Wednesday introduced business restrictions on seven U.S. entities, tightened export reviews for drones shipped to the United States, and halted the use of U.S.-based agencies for some factory inspections required under China's product-certification system. Among the measures, China's Commerce Ministry said it had put Mesa, Arizona-based ⁠Compliance Testing ​on its countermeasures list, barring Chinese organisations ⁠and individuals from conducting transactions or cooperating with the company.

Compliance Testing is a laboratory and certification-services firm. Such firms test products including wireless devices, electronics and telecommunications equipment to determine whether they meet ⁠technical, safety and regulatory standards before they can be sold. China said the company had assisted and supported measures by the U.S. Federal Communications Commission, or FCC, that harmed China's interests.

In ​a separate order, China imposed the same ban on dealings with six other U.S. entities: Applied DNA Sciences, Stratum Reservoir, Altana Technologies, the ⁠Responsible Business Alliance, Verité Group and Human Rights in China. Beijing accused the six of supporting U.S. sanctions related to China's far-west region of Xinjiang, where Washington and advocacy groups allege there are ⁠widespread ​human and labor rights abuses. Several of the organisations work on supply-chain tracing or labour-risk assessments.

The published Chinese orders do not specify asset freezes, travel bans or other penalties against the seven entities. They say organisations and individuals in China are prohibited from conducting transactions or cooperation with them. DRONE EXPORTS ⁠REVIEWED

China also announced exports to the United States of controlled drones, key drone components and related technology would be reviewed strictly on a case-by-case basis, ⁠without access to licensing conveniences. The measure does ⁠not amount to a blanket ban on drone exports but makes licensing more difficult for U.S.-bound shipments of items that are already covered by China's dual-use export-control rules.

The step could affect U.S. drone makers and other U.S. buyers that ‌depend on Chinese-made drone ‌components, equipment or related technology.