{"id":84209,"date":"2025-04-14T09:56:51","date_gmt":"2025-04-14T14:56:51","guid":{"rendered":"https:\/\/mascolombia.com\/china-strikes-back-and-hits-big-u-s-companies\/"},"modified":"2025-04-16T11:47:19","modified_gmt":"2025-04-16T16:47:19","slug":"china-strikes-back-and-hits-big-u-s-companies","status":"publish","type":"post","link":"https:\/\/mascolombia.com\/en\/china-strikes-back-and-hits-big-u-s-companies\/","title":{"rendered":"China strikes back and hits big U.S. companies"},"content":{"rendered":"\n

Trade tension between the United States and China is intensifying. Following the US government\u2019s decision to raise tariffs on Chinese products to 145%, Beijing has responded by increasing its own levies on US imports to 125%, affecting key sectors of both economies.<\/p>\n\n

You may read: China responds strongly to Trump\u2019s tariffs: how the global economy is shaken up<\/strong><\/a><\/p>\n\n

Beijing\u2019s response<\/h2>\n\n

China has retaliated against U.S. companies by imposing restrictions on their exports, including a dozen companies, and has placed 15 others on a list of \u201cuntrustworthy entities,\u201d effectively barring them from operating in the Asian country.<\/p>\n\n

An official statement accuses the United States of having disregarded the rules of the global economic system it helped establish after World War II. In the same text, China expresses its \u201cstrong condemnation\u201d of recent U.S. actions and warns that its tolerance has a limit. \u201cIf Washington persists in seriously harming Chinese interests, there will be a forceful and firm response to the ultimate consequences,\u201d it assures.<\/p>\n\n

Although the speech maintains a firm tone, Beijing has pointed out that the tariffs have already largely eliminated the demand for U.S. products in its market, so any further increase would be economically useless, \u201cirrelevant\u201d and could even be considered in the future as a ridiculous episode in the history of the global economy.<\/p>\n\n

For his part, the Chinese Foreign Ministry spokesman, Lin Jian, said Friday that his country does not seek a trade war, but neither fears it, and called on the United States to stop the pressure if it really wants to solve the differences through dialogue.<\/p>\n\n

Lin also affirmed that the measures adopted by China are aimed not only at protecting its legitimate interests, but also at preserving the international order and the rights of other nations that are affected by Washington\u2019s unilateralism. Beijing has reiterated that it will not accept unbalanced conditions in future talks and that any negotiations should be based on fairness and mutual respect.<\/p>\n\n

\"China
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U.S. companies affected<\/h2>\n\n

China\u2019s Ministry of Commerce reported this week that it has placed ten U.S. companies on its list of \u201cuntrustworthy entities\u201d and has imposed export restrictions on fifteen other U.S. firms.<\/p>\n\n

Among the companies rated as untrustworthy are TCOM Limited Partnership (specializing in air surveillance systems), Stick Rudder Enterprises LLC (aviation services), Teledyne Brown Engineering Inc. (technology and defense), Huntington Ingalls Industries Inc. (military shipbuilding), S3 AeroDefense (aviation maintenance and logistics), Cubic Corporation (transportation and defense technology solutions), TextOre (data analytics and intelligence), ACT1 Federal (defense and consulting services), Exovera (strategic information and geopolitical analysis) and Planate Management Group (infrastructure and support services in military environments).<\/p>\n\n

These U.S. companies will not be allowed to engage in China-related import or export operations or make new investments in Chinese territory, according to the new provisions.<\/p>\n\n

You may also read: Trump\u2019s tariffs hit Colombia: manufactures, flowers and coffee among the hardest hit<\/strong><\/a><\/p>\n\n

In addition, fifteen other companies were subject to export controls due to their involvement in activities considered sensitive by the Chinese government. These companies are: Leidos (technology and defense), Gibbs & Cox Inc (marine engineering), IP Video Market Info Inc (video surveillance information), Sourcemap Inc (supply chain management), Skydio Inc (autonomous drones), Rapid Flight LLC (unmanned aerial systems), Red Six Solutions (homeland security), Shield AI Inc. (artificial intelligence applied to defense), HavocAI (AI-based defense technology), Neros Technologies (electronic systems), Group W. (strategic intelligence and analysis), Aerkomm Inc. (aeronautical telecommunications), General Atomics Aeronautical Systems Inc. (military drones), General Dynamics Land Systems (armored vehicles) and AeroVironment (defense and drone technology).<\/p>\n\n

According to the official statement, all exports of dual-use goods to these companies are suspended, and any ongoing export operations must cease immediately.<\/p>\n\n

\"\"
<\/figcaption><\/figure>\n\n

Large U.S. companies in China<\/h2>\n\n

Apple<\/a>, for example, assembles about 90% of its iPhones in China, mainly at the huge Foxconn plant located in Zhengzhou, which employs about 300,000 people. According to U.S. Securities and Exchange Commission (SEC) data, the company also has some of its production distributed in India, Japan, South Korea, Taiwan and Vietnam. Moving that infrastructure out of Asia would involve not only high costs, but also significant technical challenges.<\/p>\n\n

Ford Motor Company<\/strong>, for its part, owns 32% of Jiangling Motors, which in turn owns 51% of Jiangling Ford. This gives Ford an indirect 65.32% stake in Jiangling Ford, consolidating its presence in the Chinese automotive market.<\/p>\n\n

General Motors<\/strong><\/a> also maintains a strong dependence on the Asian country, both for the sale of vehicles and the purchase of spare parts. In 2024 alone, it delivered more than 1.8 million vehicles in China.<\/p>\n\n

Tesla<\/strong><\/a>, one of the world\u2019s leading electric vehicle manufacturers, produced a total of 86,697 units at its Shanghai plant in August 2024, of which 23,241 were destined for export, consolidating its strategic role in the Chinese market.<\/p>\n\n

\"Tesla,
<\/figcaption><\/figure>\n\n

Walmart<\/strong><\/a> sources 20% of its supplies from Chinese goods and suppliers, and its sales in China reached USD 17 billion in 2024.<\/p>\n\n

Other technology companies highly exposed to the Chinese market are Qualcomm<\/strong><\/a>, which generates 46% of its revenues in that country, and Micron Technology, with 57% of its revenues coming from China.<\/p>\n\n

Other large US companies with a strong presence in China include Boeing, which depends on the supply of titanium and electronic components of Chinese origin; Nike, which manufactures 18% of its footwear in the country; and Coca-Cola, whose production chain -including aluminum cans, sweeteners and bottling plants- is also closely linked to China.<\/p>\n\nhttps:\/\/mascolombia.com\/en\/tesla-faces-its-worst-crisis-in-years-falling-sales-boycotts-and-political-tensions\/

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The escalating tariffs pushed by Washington are hurting not only large U.S. companies, but also small businesses and consumers in the U.S. China, for its part, has taken more forceful measures.<\/p>\n","protected":false},"author":1,"featured_media":84181,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rank_math_focus_keyword":"U.S. companies","rank_math_title":"","rank_math_description":"","rank_math_primary_category":"753","footnotes":""},"categories":[753],"tags":[1281],"mc_distribution":[989],"class_list":["post-84209","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-trade","tag-articulo-en","mc_distribution-suscriptores-generales"],"acf":{"euro":0,"dolar":0},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/posts\/84209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/comments?post=84209"}],"version-history":[{"count":0,"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/posts\/84209\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/media\/84181"}],"wp:attachment":[{"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/media?parent=84209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/categories?post=84209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/tags?post=84209"},{"taxonomy":"mc_distribution","embeddable":true,"href":"https:\/\/mascolombia.com\/en\/wp-json\/wp\/v2\/mc_distribution?post=84209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}