China Retaliates, US Escalates with Total Block on Chinese Tech

The prolonged technology war between the United States and China continues to escalate. After a meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing in May 2026, the world briefly breathed a sigh of relief as an agreement was reached to de-escalate the conflict. However, the ‘ceasefire’ did not last long. The Trump administration recently stirred tensions again by announcing the addition of Chinese giants to the Pentagon’s ‘blacklist’. Alibaba, Baidu, BYD, and Nio were included on this new list. At least 80 Chinese companies and their subsidiaries were accused of aiding the Chinese military. Not standing idle, China retaliated by imposing export controls on 10 US companies. The list includes American rare earth mineral producers MP Materials and USA Rare Earth. China’s response was met with a harsh counter from the US. The Federal Communications Commission (FCC) stated on Friday (26/6) last week that it would ban the import of more equipment from Chinese manufacturers. This move expands the FCC’s ban imposed in 2022 on new models of telecommunications and video surveillance equipment made by Huawei, ZTE, Hytera, Hikvision, and Dahua, citing US national security risks. The FCC stated that the ban now covers older models, not just equipment designed from late 2022 onwards. As usual, the expansion of the ban was carried out under the pretext of public safety, the security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes. The expanded ban is scheduled to take effect in early July 2026. The FCC stated that the step was necessary to protect national security by mitigating risks to the US communications sector. The Chinese Embassy in Washington and the related companies did not immediately respond to requests for comment. The FCC stated it would allow Americans to continue using equipment they already own. The FCC has taken a number of steps targeting China’s technology sector, including banning the import of all new models of Chinese-made drones in December. In March 2026, the agency banned the import of new consumer router models made in China. The new rules do not ban the import of pre-existing drone and router models. Last October, the FCC voted 3-0 to block new approvals for devices using components from companies on their list, and to allow the agency to prohibit the use of previously approved equipment in certain situations. Hikvision filed a lawsuit in December to challenge the decision, arguing that the agency had exceeded its authority and lacked a solid basis for the action. The FCC is also considering banning US telecommunications operators from interconnecting with Chinese telecommunications companies. This move would effectively prohibit Chinese telecommunications companies from operating data centres in the US.