The U.S. and China have been in a large-scale trade war over the past few years, which began when the U.S. decided to impose new tariffs on certain Chinese products. In response, China retaliated by announcing counter-tariffs. This trade conflict has resulted in a major escalation between the two nations. Despite recent efforts to resolve the issue, there are still many points of contention.
For example, the U.S. is still highly concerned about human rights abuses in the Xinjiang region of China. The latest development in this regard has seen the U.S. placing new sanctions on certain Chinese entities. This blog discusses the new sanctions and their potential impacts on the relation.
Concerns over the American Crackdown on China
The U.S. has decided to sanction a number of companies based in China. These sanctions were imposed in response to the Chinese government's violations of human rights in the Xinjiang region. The Biden administration believes that these companies are promoting inhumane activities in the region, meaning all American businesses must avoid doing business with them. In addition, the U.S. issued new guidelines for American companies operating in Hong Kong, since they may also be targeted by the Chinese government.
These developments will likely worsen the trade relationship between the U.S. and China. The two have recently been trying to sort out their differences and rebuild their trade relations, but these new sanctions have the potential to stymie the rebuilding process. At the same time, Chinese firms must recognize that human rights must take precedence over all other activities and consider changing their stance and adhering to international guidelines.
According to a recent notice published on the U.S. Department of Treasury website, the U.S. has imposed Iran-related sanctions targeting several Hong Kong-based Chinese entities.
The firms listed include Black Drop Intl Co., China 49 Group Co., Taiwan Be Charm Trading Co., Victory Somo Group (HK) Limited, PCA Xiang Gang Limited, Yummy Be Charm Trading (HK) Limited, and Damineh Optic Limited.
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