Due to concerns about national security and human rights, the United States has gradually increased sanctions against Chinese businesses and organisations. According to the
United States Department of Commerce, 721 Chinese businesses, organizations, and individuals have been added to a "entity list" that restricts their ability to purchase goods from the United States.[1]
Sanctions in the early PRC (1949–1979)
After the establishment of Communist rule in China in 1949, an embargo against the sale of military technology or infrastructure, previously levied against the Soviet Union, was expanded to include the newly established People's Republic of China.[2] Following the onset of the
Korean War, further trade restrictions were imposed.[3] According to academic Chun Lin, the embargo resulted in increased
Chinese nationalism.[4]
The trade embargo was lifted under President
Richard Nixon in
1972 right before the
opening of China and establishment of official relations.[5]
Sanctions after the 1989 Tiananmen Square protests and massacre
Following the Tiananmen Square massacre, the
Bush Sr. administration imposed an arms embargo against the PRC after the massacre of the protesters.[6]
Sanctions related to military support for Iran
The United States has sanctioned and prosecuted Chinese companies and individuals for providing material assistance to Iran's missile program. In 2014, the U.S. Treasury Department sanctioned Sinotech Dalian Carbon and Graphite Manufacturing Corporation for helping Iran buy parts to produce ballistic missiles.[7] In June 2023, the U.S. Treasury Department sanctioned Zhejiang Qingji and other entities in China and Hong Kong for selling centrifuge equipment to Iran.[8][9] In September 2023, six Chinese entities were sanctioned for allegedly assisting the
Iran Aircraft Manufacturing Industries Corporation make drones to attack oil tankers and for export to Russia's military.[10]
In addition, on 15 May 2019, the
Department of Commerce added Huawei and 70 foreign subsidiaries and "affiliates" to its
Entity List under the
Export Administration Regulations, citing the company having been indicted for "knowingly and willfully causing the export, re-export, sale and supply, directly and indirectly, of goods, technology and services (banking and other financial services) from the United States to Iran and the government of Iran without obtaining a license from the Department of Treasury's
Office of Foreign Assets Control (OFAC)".[14] This restricts U.S. companies from doing business with Huawei without a government license.[15][16][17][18] Various U.S.-based companies immediately froze their business with Huawei to comply with the regulation.[19] That same year, it was determined that Huawei also provided equipment to build
North Korea’s 3G network.[20]
Currency manipulator designation
In August 2019, the
United States Department of the Treasury designated China a
currency manipulator,[21][22][23] which resulted in China being excluded from U.S. government procurement contracts.[21] The designation was withdrawn in January 2020 after China agreed to refrain from devaluing its currency to make its own goods cheaper for foreign buyers.[24]
On July 9, 2020, the
Trump administration imposed
sanctions and visa restrictions against senior Chinese officials, including
CCP Politburo member
Chen Quanguo,
Zhu Hailun, Wang Mingshan (王明山) and Huo Liujun (霍留军). With sanctions, they and their immediate relatives are barred from entering the US and will have US-based assets frozen.[25] In response, the Chinese government announced sanctions against US Senators
Ted Cruz,
Marco Rubio, and other American officials.[26]
On November 12, 2020, President
Donald Trump signed
Executive Order 13959, titled "Addressing the Threat From Securities Investments That Finance Communist Chinese Military Companies". The executive order prohibits all U.S. investors (
institutional and retail investors alike) from purchasing or investing in securities of companies identified by the
U.S. Department of Defense as "Communist Chinese military companies."[31][32] As of January 14, 2021, 44 Chinese companies were identified. Five of these companies are to be
delisted by the
New York Stock Exchange by March 2021.[33] On January 13, 2021, the executive order was amended to require
divestment from the companies by November 11, 2021.[34]
In January 2023, the U.S. Treasury Department sanctioned Spacety China, also known as Changsha Tianyi Space Science and Technology Research Institute Co. Ltd., for providing satellite imagery to the
Wagner Group.[41] In February 2023, the U.S. Commerce Department added AOOK Technology Ltd, Beijing Ti-Tech Science and Technology Development Co, Beijing Yunze Technology Co, and China HEAD Aerospace Technology Co to the Entity List for aiding Russia's military.[42][43][44]
In October 2023, the US Department of Commerce added 42 Chinese companies to the Entity List for supplying Russia with microelectronics for missile and drone guidance systems.[47] In April 2024, the Department of Commerce sanctioned a Chinese company for supporting Russia's military through the procurement, development, and proliferation of Russian drones.[48]
Sanctions on Chinese semiconductor industry
On October 7, 2022, the Bureau of Industry and Security of the United States Department of Commerce implemented controls related to advanced computing and semiconductor manufacturing in China. Some of these controls began immediately whereas others became effective on October 12, 2022, and October 21, 2022.[49][50][51]
In March 2023, the U.S. Department of Commerce added 28 additional Chinese firms to the Entity List, including
Inspur and
Loongson, for acquiring American technology in support of the PLA.[52][53] In October 2023, the Department of Commerce added
Biren Technology and
Moore Threads to the Entity List.[54][55]
In April 2023, OFAC sanctioned two companies and four individuals in China, pursuant to
Executive Order 14059, for supplying precursor chemicals for
fentanyl production to
drug cartels in Mexico.[57][58] In May 2023, OFAC sanctioned an additional seven companies and six people in China for supplying equipment to cartels for fentanyl production.[59] In June 2023, U.S. federal prosecutors announced criminal indictments of fentanyl precursor producers in China.[60] In October 2023, OFAC sanctioned a China-based network of fentanyl manufacturers and distributors.[61][62]