China this week announced it was blocking imports from 10 American-based companies after the United States blocked several China-based high-tech companies from participating in Pentagon defense contracts. That initial action from the U.S. Department of War involves Section 1260H, an official list at the Pentagon that recognizes “Chinese Military Companies” that are operating within the United States.
An updated list, announced June 8, now names 188 companies and their subsidiaries recognized for their ties to China’s military.
China announced the 10 U.S. companies are blocked from exporting "dual-use" items, meaning products that can be for military or civilian use.
China expert Gordon Chang told American Family News nobody should be surprised China vowed to retaliate.
“What China did is not terribly effective, because the companies are not going to be significantly affected, but this is what China does these days,” Chang said.
Chang, a watchdog known for his fierce opposition to the Chinese Communist Party, said China talks big on trade but, in reality, is “trade dependent” on the United States.
“It absolutely needs the U.S. market,” he said, “because U.S. consumers account for something like 33% to 34% of global consumer spending. So China is at a disadvantage.”
China is famous for its manufacturing output, which puts millions of made-in-China products on U.S. store shelves. That also makes the U.S. China's single biggest source of exports.
President Trump has attempted to improve a $200 billion trade deficit with China with punishing tariffs that also alarmed everyone from soybean farmers to Wall Street.
Chang, however, credits Trump for using his executive powers to attempt to shrink that trade deficit. He says the Chinese and American economies are “separating” as the United States recognizes China for the adversary it is.
“And that's a good thing,” he stresses, “because we should not be reliant on China for anything. "
