World

China targets US firms and drone exports after bans

By Huizhong Wu and Kanis Leung

Aug 5, 2026

Humanoid robots displayed at the World AI Conference in Shanghai — The US last week banned imports of new foreign-made humanoid robots, which in effect targets China. -AP

China has announced a series of economic measures against the United States, including controls on exports of drones to the US and a ban on dealings with six American entities, in response to recent restrictions imposed by Washington.

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Tensions are simmering between the world's two biggest economies before an expected visit by Chinese President Xi Jinping to the US in September, despite signs of warming ties during his meetings with US President Donald Trump in Beijing in May.

The commerce ministry said the sanctions were in response to recent moves from the US, including a ban by the US Federal Communications Commission on imports of Chinese drones, and the Department of Homeland Security's decision to add 43 Chinese companies to the Uyghur Forced Labor Prevention Act entity list to prevent imports of goods made with forced labour.

The "measures seriously violate the important consensus reached by the two heads of state and severely damage China's legitimate rights and interests. China has no choice but to take necessary countermeasures in response," the ministry said on Wednesday.

It emphasised that China was acting with restraint and urged the US to scrap its measures against Beijing and cease its "erroneous practices".

It also warned of further sanctions if the US rolls out new restrictive measures against China.

Beijing is requiring reviews on a case-by-case basis of exports of unmanned aerial vehicles, their key components and related technologies that are on a list of export-controlled dual-use items that can serve both civilian and military purposes.

Six US entities, including Applied DNA Sciences, Inc and the non-governmental group Human Rights in China, were banned from engaging in trade or other activities with entities in China.

China also banned a company called Compliance Testing LLC from engaging in business in China because it had worked with the FCC in "harming China's sovereignty and security", according to a separate statement from the commerce ministry.

In December, the US FCC banned the import of new Chinese drones, though it later revised that ban to allow for some models.

Last week, it also announced bans on imports of new foreign-made humanoid robots and power inverters, citing national security risks, in a move that in effect targets China.