China widens economic pressure toolkit

China has spent its trade truce with Washington building new ways to squeeze foreign companies without raising headline tariffs. (usnews.com) Reuters reported on April 27 that Beijing has widened its toolkit with legal countermeasures, supply-chain security rules and tighter controls on critical technologies before a Trump-Xi summit next month. (usnews.com) The current truce dates to an October 30, 2025 meeting in Busan, South Korea, where President Donald Trump and President Xi Jinping agreed to de-escalate the trade war. The agreement is set to expire in November 2026. (usnews.com) (politico.com) Since then, Beijing has shifted toward narrower pressure points. On April 15, Chinese officials held initial talks with equipment suppliers as they considered limiting exports of the most advanced solar-panel manufacturing technology to the United States. (usnews.com) That matters because China makes more than 80% of the world’s solar panel components, giving any export curb far more reach than a bilateral tariff fight. (usnews.com) On April 13, China’s State Council issued regulations authorizing countermeasures against what it called foreign states’ “unlawful extraterritorial jurisdiction.” Four days earlier, on April 7, it issued separate industrial and supply-chain security rules allowing action against foreign countries, companies or organizations accused of discriminatory measures. (usnews.com) The pattern reaches beyond the United States. On April 24, China said it was banning exports of dual-use items to seven European entities over arms sales to Taiwan. (msn.com) Rare earths remain the clearest example. China’s Ministry of Commerce and customs authorities said on April 4, 2025 that export controls would apply to some medium and heavy rare-earth related items, including samarium and gadolinium products. (english.mofcom.gov.cn) Reuters’ timeline says China then restricted exports of “heavy” rare earths and related magnets to Japanese companies on January 9, and on February 24 barred dual-use exports to 20 Japanese entities it said supply Japan’s military. (usnews.com) Beijing has also used domestic compliance pressure. Reuters reported that on January 14 Chinese authorities told domestic companies to stop using cybersecurity software made by more than a dozen U.S. and Israeli firms, citing national security concerns. (usnews.com) The result is a trade fight that looks quieter on the surface and more granular underneath, with customs, licensing, procurement and legal rules doing work that tariffs once did. (usnews.com)