China sanctions 14 U.S. and Canadian firms over national security

Published October 9th, 2025 - 07:58 GMT
China sanctions 14 U.S. and Canadian firms over national security
US firm PVH, which owns Tommy Hilfiger and Calvin Klein, said February 5 it was "deeply disappointed" by China's decision to place it on the country's sanctions list. AFP
Highlights
The sanctions mark the latest escalation in a widening confrontation between China and Western nations over technology, defense, and trade policy—particularly in areas linked to Taiwan and semiconductor research.

ALBAWABA- China’s Ministry of Commerce on Thursday imposed sweeping sanctions on 14 companies and organizations from the United States and Canada, accusing them of undermining the country’s national security and sovereignty. 

The move, which places the entities on Beijing’s “unreliable entity list,” bars them from conducting import or export activities, making new investments, or engaging in data-related cooperation with Chinese partners.

In a statement carried by Xinhua News Agency, the ministry said the affected firms had engaged in actions that “seriously harmed China’s national sovereignty, security, and development interests.”

The sanctions mark the latest escalation in a widening confrontation between China and Western nations over technology, defense, and trade policy—particularly in areas linked to Taiwan and semiconductor research.

Among those targeted are U.S.-based defense and technology firms Dedrone by Axon, Epirus Inc., AeroVironment Inc., Teledyne FLIR LLC, Alliant Techsystems Operations LLC, Elbit Systems of America, Cubic Global Defense, VSE Corporation, Exelis Inc., DZYNE Technologies, and intelligence analytics company Recorded Future Inc. 

Canada’s TechInsights Inc., along with its subsidiaries, including Strategy Analytics in Europe, South Korea, and Japan, was also sanctioned, alongside the Halifax International Security Forum, a prominent North American defense conference often critical of China’s global policies.

The ministry accused Dedrone and TechInsights of engaging in “so-called military-technical cooperation with Taiwan,” publishing “malicious statements” about China, and aiding foreign governments in restricting Chinese enterprises. 

The affected entities are now banned from new investments or trade in China and face penalties on personnel travel and technology transfers.

The U.S. government dismissed the sanctions as “retaliatory and counterproductive,” with an American official telling reporters that Washington “will defend the legitimate operations of U.S. businesses abroad.” 

Canadian officials said they were “reviewing the implications” of the measures.

The move comes just weeks after Beijing blacklisted six additional U.S. defense contractors, including Huntington Ingalls Industries, and only hours after China tightened export controls on rare earth minerals and related technologies critical to global electronics and defense supply chains.

The sanctions also precede a highly anticipated late-October summit between Chinese President Xi Jinping and U.S. President Donald Trump, where technology restrictions, Taiwan, and semiconductor access are expected to dominate discussions. 

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