China imposes countermeasures in service trade, limiting U.S. companies' procurement participation and restricting legal consultation collaborations. - Sources

China imposes countermeasures in service trade, limiting U.S. companies' procurement participation and restricting legal consultation collaborations. - Sources

Beijing, March 4, 2025 - In response to the United States' recent decision to impose an additional 10 percent tariff on Chinese exports, China has announced a series of countermeasures targeting U.S. companies in the service trade sector. These measures aim to limit U.S. companies' procurement participation and restrict legal consultation collaborations.

The Ministry of Commerce (MOC) has placed 15 U.S. entities, including Leidos, on its export control list, prohibiting them from receiving dual-use items from China. Any ongoing exports must be halted immediately, with special cases requiring approval from the MOC. Additionally, ten U.S. companies, including TCOM, have been added to China's "unreliable entity list," banning them from engaging in import and export activities related to China and from making new investments in the country.

Effective March 10, 2025, China will also impose additional tariffs on a range of imports from the U.S., with a 15 percent tariff on chicken, wheat, corn, and cotton, and a 10 percent tariff on sorghum, soybeans, pork, beef, seafood, fruits, vegetables, and dairy products. These tariffs will be applied on top of existing duties, but current bonded, duty-free policies remain unchanged.

China's spokesperson emphasized that these countermeasures are a response to the U.S.'s unilateralism and bullying, which disregards facts and international trade rules. The spokesperson urged the U.S. to respect the rights and interests of other countries and withdraw its unreasonable tariff measures.

The U.S. has been repeatedly using the fentanyl issue as a pretext to impose additional tariffs on Chinese exports, despite China's strict anti-narcotics policies and extensive cooperation with the U.S. on drug control.

Investors and financial professionals should closely monitor these developments, as they may have significant implications for global trade relations and the stability of international supply chains.