China imposes new curbs on U.S. firms as trade row grows

China on Tuesday expanded its retaliatory measures against the United States by imposing new export and investment restrictions on 25 U.S. firms on national security grounds, while also implementing additional tariffs. The move comes amid escalating trade tensions between the two countries.

Among the newly targeted companies are four U.S. firms placed on China's export control list:

Leidos Holdings: Headquartered in Virginia and involved in developing hypersonic weapons, Leidos was recently awarded a $987 million contract for F-16 fighter jet support for the Taiwanese military.

Gibbs & Cox: Acquired by Leidos in 2021, this naval architecture firm specializes in designing sea surface warships, including anti-submarine warfare frigates for Taiwan.

IPVM: The surveillance company has reported on Chinese surveillance practices, including allegations that Hikvision has collaborated with the Chinese government to monitor minority Uyghurs.

Sourcemap: Providing software solutions for supply chain transparency and due diligence, Sourcemap has been used by global brands to vet cotton sourced from China's Xinjiang region.

Chinese authorities stated that the soybean and lumber import suspensions were prompted by the detection of ergot, seed coating agents, pests, and other contaminants in shipments. While these measures target specific U.S. companies, China refrained from imposing restrictions on major U.S. household names.

The new curbs are part of a broader set of retaliatory actions following U.S. tariffs imposed by the Trump administration. Earlier this week, China levied import duties on $21 billion worth of American agricultural and food products, intensifying the ongoing trade dispute.

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