China expands economic pressure tools
- China used its trade truce with the United States to add new supply-chain and sanctions rules, widening Beijing’s power to hit foreign firms. - The latest measures include April 7 supply-chain security rules and April 13 anti-sanctions rules, after earlier curbs on rare earths and foreign software. - The moves land as Washington builds replacement tariffs after a court setback. (abcnews.com)
China has spent its trade truce with Washington adding new ways to pressure foreign companies and control critical supplies. (straitstimes.com) The new push runs through law and regulation, not just tariffs. Reuters reported that Beijing added fresh rules this month on supply-chain security and on countering what it calls foreign “extraterritorial jurisdiction” before a possible Xi Jinping-Donald Trump summit next month. (straitstimes.com) On April 7, China’s State Council published 18 articles on industrial and supply-chain security that took effect immediately. The rules say authorities can act against foreign countries, companies or organizations that adopt “discriminatory measures” undermining China’s industrial and supply chains. (english.www.gov.cn) (straitstimes.com) On April 13, the State Council issued another set of rules, this time on countering foreign states’ unlawful extraterritorial jurisdiction measures. Xinhua said the 20-article regulation took effect upon publication. (english.www.gov.cn) Those measures sit on top of earlier steps aimed at technology and strategic materials. Reuters reported that on January 9 China began restricting exports of “heavy” rare earths and magnets to Japanese companies, and on January 14 Chinese authorities told domestic firms to stop using cybersecurity software from more than a dozen U.S. and Israeli companies. (straitstimes.com) (money.usnews.com) Another earlier move targeted artificial-intelligence hardware bought with public money. Reuters reported in November 2025 that China told state-funded data-center projects to use only domestically made artificial-intelligence chips, forcing some projects to strip out foreign processors if construction was still limited. (economictimes.indiatimes.com) The backdrop in Washington is another tariff rebuild. After the Supreme Court struck down Trump’s emergency tariffs in February 2026, the administration moved to temporary import taxes and this week opened hearings that could lead to new Section 301 tariffs covering forced labor and overproduction cases. (abcnews.com) That is already spilling into day-to-day business operations in the United States. CBS News reported that importers hit glitches in the new tariff-refund portal, and Busy Baby co-founder Beth Benike said she was trying to recover $50,000 in tariffs while dealing with account errors and long waits for help. (cbsnews.com) China’s domestic data show its industrial sector is still growing through the latest round of pressure. Official figures released April 27 showed industrial profits rose 15.5% in the first quarter from a year earlier, up from 15.2% in January-February. (money.usnews.com) The result is a trade fight that now runs through export licenses, software bans, chip rules, supply-chain investigations and tariff cases at the same time. Companies are being asked to plan around both governments’ legal toolkits, not just the next tariff rate. (straitstimes.com) (abcnews.com)
