China Announces Series of Countermeasures Against U.S. Restrictions, Tightens Controls on Drone Exports

Dragon Media News Desk

China has announced a series of countermeasures in response to recent restrictions imposed by the U.S. Federal Communications Commission and the Department of Homeland Security, including a national security investigation, tighter controls on drone-related exports and measures against seven U.S. entities.

A spokesperson for China’s Ministry of Commerce said on Wednesday that the U.S. measures had seriously violated the important consensus reached by the two countries’ heads of state and severely infringed upon China’s legitimate rights and interests.

According to the spokesperson, China has launched a national security investigation into certain imported office equipment with printing and copying functions that uses foreign system software. It is the first investigation of its kind conducted by China in the field of foreign trade.

Preliminary information indicates that office equipment using foreign system software may affect China’s national security interests in foreign trade, the ministry said. Foreign system software includes driver software and embedded software developed, tested or maintained by foreign individuals or entities.

The investigation will examine the importation of the products concerned, the impact of imported products, technologies or services on national security, domestic demand and the level of reliance on foreign goods or technologies.

It will also assess the development of related Chinese industries, their capacity to meet domestic demand and national security requirements, the impact of foreign government policies and measures, and other matters affecting national security interests in foreign trade.

China has also decided to subject exports to the United States of drones, key drone components and related technologies included on its dual-use export control list to strict case-by-case reviews. Such exports will not qualify for facilitated licensing procedures.

The Ministry of Commerce has added U.S. company Compliance Testing LLC to its countermeasure list. China accused the company of assisting and supporting FCC measures that endangered China’s sovereignty, security and development interests.

China also imposed countermeasures against six other U.S. entities accused of supporting unlawful U.S. sanctions against Chinese companies over Xinjiang-related issues.

The entities are Applied DNA Sciences, Inc., Stratum Reservoir, LLC, Altana Technologies, Inc., the Responsible Business Alliance, Verite Group, Inc. and Human Rights in China.

Organizations and individuals within China are prohibited from conducting transactions, cooperation or other related activities with Compliance Testing LLC and the six other entities.

Separately, China’s National Certification and Accreditation Administration immediately suspended the authorization of U.S.-based certification bodies to carry out follow-up factory inspections for products certified under the China Compulsory Certification system.

The CCC system forms part of China’s market access framework and is intended to safeguard national security, prevent market fraud and ensure product quality. It currently covers 106 types of products across 17 categories.

According to the Ministry of Commerce, the FCC has continued to overstretch the concept of national security since the meeting between the Chinese and U.S. heads of state in Busan.

The commission has introduced restrictions involving telecommunications operations, testing laboratories, drones, consumer routers, submarine cables, advanced robotic devices and power inverters, despite opposition from China and concerns raised by industries in both countries.

China also expressed strong dissatisfaction after the U.S. Department of Homeland Security added more than 40 Chinese entities to the so-called Uyghur Forced Labor Prevention Act Entity List on July 31.

The ministry spokesperson said China’s countermeasures remained generally restrained and stressed that Beijing valued the hard-won stability in bilateral economic and trade relations.

China urged the United States to immediately revoke the relevant restrictions, stop what Beijing described as wrongful actions and return to friendly consultation and cooperation in resolving differences.

The Ministry of Commerce warned that China would adopt further countermeasures if the United States continued to introduce new restrictions against Chinese interests.