Pre-Summit Exchange: Beijing Retaliates With New Sanctions Weeks Before Trump-Xi Meeting

As the United States and China prepare for a high-stakes summit between President Trump and Xi Jinping, both countries are engaging in a calculated game of economic leverage.
Published: 8/5/2026, 2:28:06 PM EDT
Pre-Summit Exchange: Beijing Retaliates With New Sanctions Weeks Before Trump-Xi Meeting
U.S. President Donald Trump (R) is greeted by Chinese leader Xi Jinping during a welcome ceremony in Beijing on May 14, 2026. (Alex Wong/Getty Images)

A few weeks ahead of Chinese leader Xi Jinping’s visit to the United States for a summit with U.S. President Donald Trump, the two nations have escalated tensions.

On Wednesday, China's Ministry of Commerce announced a series of sanctions targeting the United States and its businesses, spanning from Applied DNA Sciences and drones to imported office equipment.

China said that the measures were a response to Washington’s recent actions against Chinese companies.

Last week, Washington added more than 40 Chinese entities to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List and imposed an additional 12.5 percent tariff on Chinese imports.

This comes with defense supply chain restrictions, dedicated funding to counter China’s global influence, and targeted technology blockades.

Beijing added six U.S. companies to its "countermeasures list," including a biotechnology firm, a resource analytics firm, Business Alliance, and the organization Human Rights in China. A seventh firm—U.S.-based Compliance Testing LLC—was separately placed on a countermeasures list.

China also stated that controlled drones, key components, and related technologies bound for the United States will now undergo stricter case-by-case reviews, which could delay shipments.

Additional restrictions include suspending follow-up factory inspections conducted by U.S. bodies under China's Compulsory Certification (CCC) system, potentially increasing costs for manufacturers and delaying production.

Additionally, Beijing launched a national security investigation into imported printing, copying, and office equipment.

Last year, the United States and China were locked in intense trade friction for most of the year, including increased tariffs, export controls on critical minerals, and high-tech blockades. Following a meeting between Trump and Xi last October, the two sides reached a temporary truce.

Both countries are simultaneously preparing for the upcoming Xi-Trump summit scheduled for September.

On July 22, U.S. Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi in Manila on the sidelines of the 59th ASEAN Foreign Ministers’ Meeting to stabilize relations amid escalating trade and technology disputes, while establishing diplomatic groundwork and negotiating deliverables for Xi’s visit to Washington.
Last week, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer held a high-level video conference with Chinese Vice Premier He Lifeng.

In early July, China's Vice Minister of Foreign Affairs Ma Zhaoxu visited the United States, a trip that was widely regarded as preparatory for Xi’s upcoming visit.