China Strikes Back, US Response Unexpected

China has begun to retaliate against a series of technology restrictions imposed by the United States. However, Washington is showing no signs of easing and is instead expected to increase pressure on China’s technology supply chain. In recent months, the Federal Communications Commission (FCC), an agency traditionally known for managing spectrum auctions and television licences, has emerged as the spearhead of the Trump administration’s most aggressive policies towards China. Under the leadership of Brendan Carr, a Trump ally, the FCC has taken various steps to counter what the US views as risks to its supply chain and national security. According to a Reuters report, the FCC has banned imports of new models of Chinese-made drones, routers, inverters, and robots. The agency has also initiated a process to block all Chinese laboratories from testing electronic devices such as smartphones, cameras, and computers destined for the US market. Furthermore, the FCC is currently drafting rules that could prohibit the import of new Chinese-made data centre components, a move aimed at protecting the technology infrastructure underpinning the artificial intelligence (AI) boom in America. US officials say these policies have White House backing. Interestingly, the FCC is reportedly trying to avoid direct confrontation with Beijing by drafting rules that target specific technologies without explicitly naming China. However, this strategy has now triggered a response from Beijing. On Wednesday, China announced tightened export controls on drones and related technology destined for the US. Beijing also imposed sanctions on American testing and certification firms in response to the FCC’s actions and other Washington trade policies. Sources familiar with the matter said Chinese officials had attempted to establish communication with the FCC, but these efforts were rebuffed. The FCC declined to comment on the outreach from China, while the Chinese Embassy in Washington did not respond to Reuters’ request for comment. This escalation comes ahead of a planned meeting between Trump and Chinese President Xi Jinping in September. The two leaders are expected to discuss efforts to stabilise bilateral relations, which were shaken by last year’s tariff war. Although there is usually pressure to de-escalate tensions ahead of high-level meetings, national security experts believe US pressure on China will continue. Chris McGuire, a former White House official under President Joe Biden, said that just because China is responding does not mean everything will suddenly stop. He assessed that the US administration is becoming frustrated because Washington believes China is not complying with previous agreements. China’s Ministry of Commerce did not comment to Reuters regarding the FCC. Previously, Beijing opposed the FCC’s moves, calling the policies discriminatory against Chinese companies and warning they could disrupt global supply chains, while vowing to take retaliatory measures. The FCC and the White House also declined to comment. However, a US official stated that the FCC’s actions are not aimed at any specific country. The official said the FCC’s recent actions are global in nature and not targeted at any particular nation, designed to promote America’s reindustrialisation and ensure national security. The FCC’s approach differs from Trump’s broader policy towards China. After last year’s tariff war ended in a fragile truce, Trump took several steps to ease tensions, including relaxing restrictions on advanced AI chip exports to China and delaying approval of a US$14 billion arms sale to Taiwan. US officials and analysts believe the FCC has become a way for Washington to maintain pressure on China without damaging overall bilateral relations. Eric Sayers of the American Enterprise Institute said it is not an exaggeration to say the FCC has become the centre of gravity for competitive actions against China during this Trump administration.