China Retaliates, US Escalates with Total Block on Chinese Tech
The prolonged technology war between the United States and China continues to escalate. Following the 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 ease the conflict.
However, this ‘ceasefire’ did not last long. Recently, the Trump administration has acted again by announcing the addition of Chinese giants to the Pentagon’s ‘blacklist’. Alibaba, Baidu, BYD, and Nio have been included in this new list.
At least 80 Chinese companies and their subsidiaries are accused of assisting the Chinese military. Not remaining idle, China subsequently retaliated by imposing export controls on 10 US companies. This list includes US rare earth mineral producers, namely MP Materials and USA Rare Earth.
China’s response was met with further harsh retaliation from the US. The Federal Communications Commission (FCC) stated last Friday (26/6) that it will ban the import of even more equipment from Chinese manufacturers.
This move expands the FCC ban implemented in 2022 against 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, this expansion of the ban is being carried out under the pretext of public safety, the security of government facilities, the physical security monitoring of critical infrastructure, and other national security objectives, as reported by Reuters on Monday (29/6/2026).
The expansion of the ban is scheduled to take effect in early July 2026. The FCC stated that the step is necessary to protect national security by mitigating risks to the US communications sector.
The Chinese Embassy in Washington and the relevant companies did not immediately respond to requests for comment.
The FCC stated that it will allow American citizens to continue using equipment they already possess.
The FCC has taken several steps targeting the Chinese technology sector, including banning the import of all new models of Chinese drones in December. In March 2026, the agency banned the import of new consumer router models made in China. The new rules do not prohibit the import of previously existing drone and router models.
Last October, the FCC decided via a 3-0 vote to block new approvals for devices using components from companies listed on their blacklist, 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 strong basis for such 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.