‘Tit-for-tat response’? Why China unleashed fresh sanction, export curb blitz

China and the United States have unleashed a barrage of economic sanctions and export control measures in recent days – and the tit-for-tat exchange is unlikely to end soon as the two sides seek leverage in ongoing talks over trade and technology issues, analysts said.

On Thursday, Washington imposed sanctions on a slew of Chinese entities, including an independent refinery and terminal, alleging they were involved in purchasing or shipping Iranian oil.

Just hours earlier, Beijing had issued six separate notices outlining a sweeping expansion of its export control regime. The new restrictions covered rare earth production technologies and equipment, several extra rare earth elements, as well as key items related to lithium battery production and superhard materials.

Rajiv Biswas, CEO of research firm Asia-Pacific Economics, said the flurry of measures was ultimately driven by geostrategic and military rivalry between the US and China and would continue even as the two sides sought to agree a trade deal.

“Despite the latest round of sanction measures, the US and China will continue with trade negotiations to try and reach a wide-ranging bilateral trade deal,” he said.

South China Morning Post