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US Expands Tech Export Controls As China Vows Retaliation

A new round of US export restrictions targeting Chinese tech subsidiaries sparks sharp condemnation from Beijing, raising global concerns over supply chains and innovation.

6 min read

In the heart of Hangzhou, Zhejiang province, on September 28, 2025, hundreds of curious spectators gathered to witness a spectacle that could have been plucked straight from the future: two Unitree humanoid robots squaring off in a boxing ring at a bustling tech show. The scene, as reported by FEATURECHINA and Sipa USA, was more than just a showcase of advanced robotics—it was a vivid symbol of China’s ambitions in the global technology race, ambitions now facing mounting external pressure.

That same week, tensions between Beijing and Washington reached a new crescendo. According to CNN, the United States unveiled a sweeping expansion of its export controls targeting Chinese technology firms. The latest U.S. policy doesn’t just focus on companies already on the so-called “entity list”—it now stretches to any subsidiary that is at least 50 percent owned by a restricted company. This expansion could potentially impact thousands of enterprises embedded in high-tech supply chains, from artificial intelligence to semiconductor manufacturing and advanced robotics (the very kind on display in Hangzhou).

Beijing’s response was swift and unequivocal. On September 29, 2025, a spokesperson for China’s Ministry of Commerce publicly called on the United States to “cease its unreasonable suppression of Chinese companies,” as reported by China’s official news agency. The spokesperson didn’t mince words, describing the new rule as “another example of the U.S. overstretching the concept of national security and abusing export controls.” The official went further, warning, “It will also seriously disrupt the international economic and trade order, and damage the security and stability of global industrial and supply chains.”

By September 30, the rhetoric had sharpened even more. A Ministry spokesperson labeled the U.S. move as “extremely malicious,” according to CNN, and underscored that China “will take the necessary measures” to protect the rights and interests of its companies. The language was clear, but so was the underlying anxiety: the world’s two largest economies are locked in a high-stakes contest over the future of technology, and both sides are showing little sign of backing down.

For the United States, the rationale is straightforward, at least according to Washington officials. The Department of Commerce explained that earlier gaps in export controls had allowed goods and technologies to slip through the cracks—sometimes undermining U.S. national security and foreign policy. “For a long time, gaps allowed the export of goods that undermine the national security of the United States and its foreign policy,” U.S. officials noted. The new rules are designed to close those loopholes, especially by targeting subsidiaries that might otherwise serve as backdoor conduits for restricted goods.

But the controls go even further. The updated regulations also extend to the so-called “Military End-User” list, a mechanism intended to prevent dual-use technologies—those with both civilian and military applications—from ending up in the wrong hands. The focus is squarely on sectors like artificial intelligence, semiconductors, advanced robotic systems, and the manufacturing tools that make them possible. The U.S. sees these areas as critical not just for economic competitiveness, but for national security in an era where the lines between civilian and military technology are increasingly blurred.

China, for its part, sees these moves as part of a broader pattern of what it calls “unreasonable suppression.” The Ministry of Commerce spokesperson argued that the U.S. is abusing the concept of national security to justify actions that, in Beijing’s view, are really about stifling competition and containing China’s rise as a technological powerhouse. “China firmly opposes the U.S. move and will take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises,” the spokesperson reiterated, as reported by China’s official outlets.

It’s not just rhetoric. The Chinese government has signaled that it’s prepared to respond, though the precise nature of those “necessary measures” remains to be seen. In previous disputes, Beijing has retaliated with its own restrictions, increased scrutiny of foreign firms, and legal challenges at the World Trade Organization. Observers say that the current standoff could escalate further, especially as both sides dig in ahead of a high-profile diplomatic meeting.

Indeed, the timing of these developments is no accident. Economic and technological diplomacy between Washington and Beijing is intensifying, particularly as leaders from both countries prepare to meet on the sidelines of the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea. According to CNN, the agenda will be packed: discussions are expected to cover technological competition, security concerns, and possible pathways for cooperation in innovation. But with each new round of export controls and retaliatory rhetoric, the space for compromise seems to be shrinking.

The stakes are enormous—not just for the U.S. and China, but for the entire world. The new export controls are expected to ripple across global supply chains, affecting thousands of companies that rely on advanced components, software, and manufacturing tools. Industry insiders warn that the uncertainty could chill investment, disrupt production schedules, and even slow the pace of technological innovation itself. As the Ministry of Commerce spokesperson put it, the U.S. policy “will seriously disrupt the international economic and trade order, and damage the security and stability of global industrial and supply chains.”

For many in the technology sector, the current standoff is both familiar and unsettling. The U.S.-China rivalry over technology has been simmering for years, with previous flashpoints including the blacklisting of telecom giant Huawei, tit-for-tat tariffs, and restrictions on chip exports. But the latest measures mark a new phase, one that reaches deeper into the global economy and raises fresh questions about the future of innovation, competition, and cooperation.

Back in Hangzhou, the sight of two humanoid robots sparring in the ring was a reminder of just how far technology has come—and how entwined the fortunes of nations have become with the machines they build. As the world watches the next moves in this escalating contest, one thing is clear: the outcome will shape not just the balance of economic power, but the very nature of the technologies that define our age.

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