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US-China Relations

HKET: U.S. House Members Urging Trump to Ban Chinese Automakers from Setting Up U.S. Factories

Hong Kong Economic Times (HKET), the leading financial daily in Hong Kong, recently reported that, concerns in the U.S. political arena regarding the infiltration of the Chinese auto industry have intensified. Dozens of U.S. House members have written to President Trump, urging him to impose a complete ban on Chinese automakers operating in the U.S. and to prevent Chinese automakers from using the USMCA agreement to circumvent tariffs.

The letter to the president, spearheaded by Democratic Representative Debbie Dingell, garnered over 70 House member signatures. It explicitly states that any move to lower barriers to entry for Chinese automobiles into the U.S. market, including allowing Chinese-made vehicles manufactured in other parts of North America (Canada or Mexico), would pose a “direct threat” to U.S. manufacturing, domestic workers, and national security.

In their letter, the lawmakers urged the Trump administration to take three specific actions: First, maintain tariffs: continue to impose existing tariffs on Chinese automakers and imported vehicles. Second, ban manufacturing: explicitly prohibit Chinese entities from establishing production bases within the United States. Third, close loopholes: strictly prohibit vehicles sold by Chinese entities in Canada or Mexico from entering the U.S. market, preventing them from circumventing law enforcement through cross-border trade and thus eroding the effectiveness of policies supporting domestic manufacturing.

The U.S. Senate is currently drafting a bill aimed at banning Chinese cars from entering the country through legislation; earlier this month, Democratic senators also collectively called on the White House to take strong measures in this regard.

Source: HKET, April 29, 2026
https://inews.hket.com/article/4121337/

U.S. Rejected Beijing’s Invitation to U.S. Companies Accompanying Trump’s Visit to China to Meet with Chinese Leaders

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, the U.S. government is inviting CEOs of major companies such as Nvidia, Apple, ExxonMobil, and Boeing to accompany President Trump on his visit to China next week, but they have reportedly declined the Chinese side’s invitation to arrange special talks between the accompanying company executives and senior Chinese officials. Executives from Qualcomm, Blackstone Group, Citigroup, and Visa were also among those invited.

The U.S. rejected China’s invitation to organize industry-specific talks between senior Chinese leaders and U.S. company CEOs, believing that such a move could make U.S. companies appear to have too close a relationship with Beijing. The White House has not formally invited the business executives, and the initial list of 24 proposed executives to accompany the visit may eventually be reduced by half. However, sources say Boeing CEO John Ottberg and Citigroup CEO Richard Fraser are indeed scheduled to visit, with Boeing set to finalize its largest aircraft order in nearly a decade with China.

Trump visited China in 2017 during his first presidential term, accompanied by nearly 30 executives. The two sides signed agreements worth over US$250 billion, setting a record for Sino-US economic and trade cooperation.

Source: Lianhe Zaobao, May 8, 2026
https://www.zaobao.com.sg/news/china/story20260508-9015326?ref=global-top-news-13

China Moves to Block U.S. Sanctions on Chinese Refiners Importing Iranian Oil

On April 24, the U.S. Department of the Treasury imposed sanctions on Hengli Petrochemical (Dalian) Refining & Chemical Co., Ltd., a China-based independent refinery, for allegedly purchasing Iranian crude oil linked to Iran’s military. U.S. authorities stated that since at least 2023, the company had received shipments overseen by Sepehr Energy—an entity associated with Iran’s armed forces—generating hundreds of millions of dollars in revenue for Iran army. The move is part of broader U.S. efforts to pressure Iran’s oil sector, including earlier sanctions on several Chinese “teapot” refineries. These smaller independent refiners – so that they appear as “non-government” actions – are major buyers of Iranian oil, much of which is transported covertly and often labeled as originating from other countries such as Malaysia.

In response, on May 2, China’s Ministry of Commerce issued a blocking order rejecting U.S. sanctions against five Chinese firms: Hengli Petrochemical, Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd., and Shandong Shengxing Chemical Co., Ltd. The order, citing Chinese laws on national security, foreign relations, and countering foreign sanctions, declared the U.S. measures to be an improper extraterritorial application of law.

It further stipulates that no Chinese entity or individual may recognize, comply with, or enforce U.S. sanctions imposed under Executive Orders 13902 and 13846, including measures such as designation on the Specially Designated Nationals (SDN) list, asset freezes, and transaction bans.

The blocking order took effect immediately upon issuance on May 2, 2026.

Source: Radio France International, May 2, 2026
https://www.rfi.fr/cn/政治/20260502-美制裁五涉伊朗石油交易中企-中国商务部发布阻断禁令-不得承认执行遵守

China Enacts Law to Counter Foreign Extraterritorial Jurisdiction

China officially implemented the “Regulations Against Foreign Improper Extraterritorial Jurisdiction” today, establishing a legal framework to counter what Beijing considers overreaching foreign sanctions. The move comes just ahead of an anticipated summit between President Xi Jinping and U.S. President Trump, scheduled for May 14–15 in Beijing, and is widely seen as a pointed warning signal.

Signed by Premier Li Qiang and published by Xinhua on April 13, the regulations take effect immediately upon publication. The stated aim is to safeguard China’s national sovereignty, security, and development interests, protect the lawful rights of Chinese citizens and organizations, and uphold an international order grounded in international law.

The regulations, comprising 20 articles, establish three main pillars. First, they define the scope of application: when a foreign government violates international law and basic norms of international relations through improper extraterritorial measures that harm China’s interests, Beijing reserves the right to respond — including by asserting its own extraterritorial jurisdiction over conduct with an appropriate connection to China.

Second, the regulations create a system to identify, block, and counter such foreign measures. No organization or individual may execute or assist in enforcing foreign extraterritorial measures against China. A “malicious entity list” will be established targeting foreign organizations and individuals who promote or participate in such measures, along with a prohibition order system and corresponding legal liabilities.

Third, the regulations strengthen support mechanisms, allowing Chinese citizens and organizations to sue parties whose enforcement of foreign measures infringes on their lawful rights. Industry associations are also called upon to provide guidance to members.

Countermeasures available to the Chinese government include visa denials, entry bans, deportation, asset freezes, restrictions on transactions and investment, import and export prohibitions, and fines, among other steps.

Source: Central News Agency (Taiwan), April 13, 2026
https://www.cna.com.tw/news/acn/202604130309.aspx

FCC Plans to Ban Chinese Labs from Testing Electronic Devices Used in U.S.

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that, the U.S. Federal Communications Commission (FCC) siad that it will vote this month on whether to ban all Chinese laboratories from providing testing services for electronic devices used in the United States, such as smartphones, cameras, and computers.

FCC stated that it banned laboratories owned or controlled by the Chinese government from testing U.S. electronic equipment last year, resulting in 23 laboratories being prohibited from conducting related operations. However, the agency claims that the vast majority of testing laboratories located in China are still testing U.S. electronic equipment. The new rule will prohibit the accreditation of testing laboratories and certification bodies from countries that have not signed reciprocal agreements with the United States.

Currently more than 75 percent of testing is being conducted in countries that have not committed to providing U.S. laboratories with reciprocal treatment and the FCC stated that it will initiate procedures to “end this unfair system.” The FCC’s latest proposal comes at a time of growing concern in Washington about the security of the global technology supply chain and efforts to prevent potential adversaries from using testing and certification to influence the U.S. market. The FCC stated that it will solicit public comment on the proposal before finalizing the rules.

Source: Lianhe Zaobao, April 9, 2026
https://www.zaobao.com.sg/news/china/story20260409-8864666

Open-Source Giant Red Hat Laid Off Its Entire R&D Team in China

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that open-source giant Red Hat has laid off all members of its China R&D team. The news was confirmed by an email sent to the China team by Red Hat’s CTO and Senior Vice President of Global Engineering.

As part of its “global site selection strategy”, Red Hat will cease engineering activities in China. Affected employees will no longer be responsible for their daily work duties, but their employment will be retained until July 31, 2026, when they will officially terminate their employment. This layoff involves approximately 419 people.

According to Red Hat China’s official website, Red Hat Greater China currently has over 700 employees, including more than 500 in R&D and service teams, with over 300 software developers and researchers at its Beijing R&D center alone. This means that Red Hat’s core R&D capabilities in China have been almost entirely eradicated, and its R&D functions will be transferred to other engineering hubs in the Asia-Pacific region.

Red Hat’s layoffs in China were not accidental. In August 2024, its parent company, IBM, had already decided to lay off most of its R&D and testing staff in China, affecting more than 1,800 people. In March 2025, IBM China Investment Co., Ltd. and all its branches ceased business operations and have completed the deregistration process.

Source: NetEase, April 10, 2026
https://www.163.com/dy/article/KQ65AV9D0511CPVM.html

Huanqiu Editorial: U.S. AI Data Centers Depend on China’s Power Equipment

Huanqiu Times published an editorial arguing that U.S. AI data center development remains dependent on Chinese power equipment, particularly at the infrastructure level.

Citing a Bloomberg report, the article notes that nearly half of the AI data centers planned in the United States this year may face delays or cancellations due to shortages of critical electrical components. While the U.S. maintains advantages in advanced chips and AI software, these strengths are being constrained by insufficient power infrastructure and limited domestic capacity to produce key electrical equipment.

The editorial highlights that AI development increasingly relies on stable energy supply and supporting infrastructure. Essential components such as transformers, switchgear, and batteries—though accounting for a relatively small share of total costs—are indispensable for data center construction and operation. The U.S. continues to rely heavily on imports for these components, particularly from China, while trade restrictions and tariffs have further strained supply chains and contributed to project delays.

More broadly, the article argues that this situation reflects the globalized nature of the AI supply chain, with China playing a central role as a major supplier of electrical infrastructure equipment. It concludes that without greater international cooperation and adjustments to current trade approaches, the United States may continue to face challenges in scaling its AI infrastructure despite its technological advantages.

Source: Huanqiu Times, April 2, 2026
https://opinion.huanqiu.com/article/4R0Ee6ahMqE

Chinese Scholar: Iran War Complicates Trump’s Planned China Visit, Giving Beijing More Leverage

Wang Yiwei, a professor of international relations at Renmin University of China, said in an interview with Hong Kong’s pro-Beijing newspaper Ming Pao that the Iran War has complicated U.S. President Donald Trump’s planned visit to China. According to Wang, the situation may leave Trump in a more difficult diplomatic position while increasing Beijing’s bargaining leverage ahead of the visit.

Wang argued that the U.S. military campaign against Iran could become prolonged and may last until September. Without deploying ground forces, he said, Washington would likely find it difficult to completely eliminate Iran’s nuclear capabilities because many of the facilities have already been moved underground. Wang also defended China’s approach to the crisis, saying Beijing has taken a relatively cautious stance in criticizing the United States while avoiding the harder line adopted by Russia. He added that China remains uncertain about Iran’s political stability and its long-term attitude toward Beijing. At the same time, Iran’s retaliatory strikes on bases in several Arab countries highlight China’s regional interests, as Beijing has significant investments in Saudi Arabia and the United Arab Emirates and is preparing to host a China–Arab States summit.

On Taiwan, Wang said Trump’s main concern is ensuring that Taiwan Semiconductor Manufacturing Company (TSMC) does not fall under mainland Chinese control. Beijing, however, hopes the United States will publicly oppose Taiwan independence and delay the delivery of arms sales to Taiwan. Wang suggested that while Washington cannot openly reverse its policy, it could slow implementation through practical measures such as postponing deliveries or citing technical issues. He also said China would prefer that Trump restrain Japan’s leadership from supporting Taiwan independence.

Wang added that Trump had initially planned to visit China from a position of strength, but the prolonged Iran conflict has complicated that strategy and increased China’s leverage. He noted that Trump also faces domestic political pressure ahead of the U.S. midterm elections, which may make cooperation with China more important. In this context, Wang said Beijing could remain flexible while seeking concessions, as long as the United States is able to claim a political victory domestically.

Source: Ming Pao, March 14, 2026
https://news.mingpao.com/pns/中國/article/20260314/s00013/1773421783362/王義桅-伊朗戰火增華籌碼-「中美共治」是「毒誘」