US Tightens Export Controls: 123 Entities Added, China Reacts as Biden-Xi Meeting Looms

U.S. Expands Export Controls, Straining Relations with China

In a move that has heightened tensions between the United States and China, the U.S. government has added 123 entities to its export control list, including 42 from China. This decision comes amid a high-stakes meeting between U.S. President Joe Biden and Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation leaders’ week in Woodside, California.

The U.S. Department of Commerce announced the expansion of export controls as part of its efforts to restrict Russia’s access to advanced U.S. technology for weapons development. The list also includes entities from Russia, Türkiye, Iran, and Cyprus.

China’s Ministry of Commerce swiftly condemned the action, characterizing it as unilateral sanctions and an example of long-arm jurisdiction. Beijing argues that this move undermines the international trade order and global industrial stability, vowing to safeguard the rights and interests of Chinese firms affected by the decision.

Undersecretary of Commerce for Industry and Security, Alan Estevez, emphasized the importance of a multilateral approach in implementing these measures. The U.S. is also targeting potential diversion through shell companies by adding high-diversion risk addresses in Hong Kong and Türkiye to the Entity List.

This latest action follows a series of trade-related measures taken by the Biden administration. In February, trade restrictions were imposed on 93 entities from various countries for supporting Russia’s war effort in Ukraine. Additionally, in April, the U.S. Trade Representative initiated a probe into China’s maritime, logistics, and shipbuilding industries, alleging unfair, non-market practices.

As the U.S. tightens its grip on technology exports, entities on the list now face stricter export restrictions and licensing requirements for certain technologies and goods. This development is likely to further complicate the already complex U.S.-China relationship, as both nations navigate their economic and strategic interests in an increasingly interconnected global landscape.