China Retaliates, US Tech and Drone Firms Now Face the Consequences
China is retaliating against trade and technology pressure from the United States by introducing a series of new policies targeting companies, drone technology, and certification bodies from the US.
China’s Ministry of Commerce on Wednesday (5/8) prohibited domestic organisations and individuals from doing business with seven US entities.
Beijing also tightened export controls on drones and related technology destined for the US and restricted the role of US agencies in mandatory certification inspections at factories in China.
Beijing stated that the policies are a response to the latest restrictions imposed by Washington on Chinese telecommunications operators, testing laboratories, drones, consumer routers, submarine cables, advanced robotics equipment, and power inverters.
China also referred to the US government’s decision last week to add more than 40 Chinese entities to the Uyghur Forced Labor Prevention Act list.
The announcement came after Reuters reported that President Donald Trump’s administration is drafting a national security measure that would ban imports of new Chinese data centre component models, including optical transceivers.
“This is a retaliatory measure, and it is not something surprising,” said Alfredo Montufar-Helu, Managing Director of Ankura China in Beijing, as quoted by Reuters on Thursday (6/8/2026).
“Beijing has spent the last few months building their toolkit of retaliatory measures,” he added.
This latest policy marks a new chapter in the trade and technology tensions between the US and China. Washington continues to tighten China’s access to US technology and markets, while Beijing retaliates with export restrictions and sanctions against certain American entities.
China has added Compliance Testing LLC, based in Mesa, Arizona, to its retaliatory action list. With this decision, organisations and individuals in China are prohibited from conducting transactions or cooperating with the company.
Beijing accused the testing and certification company of assisting and supporting the US Federal Communications Commission’s (FCC) latest measures targeting China, thereby harming the legitimate rights and interests of Chinese companies.
In April, the FCC adopted a fast-track review process for devices tested in US laboratories or partner countries. The FCC also proposed ending recognition of testing laboratories and certification bodies in countries that do not have reciprocal arrangements with Washington.
If that policy is implemented, China-based laboratories and certification bodies will find it increasingly difficult to help manufacturers obtain FCC equipment authorisation for devices sold in the US market.
In addition to Compliance Testing LLC, China has also imposed the same business ban on Applied DNA Sciences, Stratum Reservoir, Altana Technologies, Responsible Business Alliance, Verité Group, and Human Rights in China.
Beijing accused the seven entities of supporting US sanctions related to Xinjiang. Some of them are involved in supply chain tracking, labour risk assessment, and human rights advocacy.
However, the Chinese government did not announce asset freezes or travel bans against these entities.
China has also tightened oversight of exports of drones, key components, and related technology destined for the US. Each shipment will undergo case-by-case review without an expedited licensing mechanism.
This policy is not a blanket export ban, but it could potentially slow shipments of goods covered by China’s dual-use export control rules.
Beijing has also suspended permits for US-based agencies to conduct follow-up factory inspections under China’s mandatory certification system, which could potentially increase costs and cause delays for manufacturers.