China sanctions six US firms despite ongoing trade talks

China imposed sanctions on six American companies Thursday, heightening trade tensions even amid high-level discussions aimed at easing disputes over technology and security.

Three US firms, including shipbuilder Huntington Ingalls Industries, were added to China’s “unreliable entity list,” effectively banning them from conducting import, export, or investment activities in the country. 

Additional companies on the list include Saronic Technologies, Aerkomm, and Oceaneering International.

Beijing cited threats to national security and development interests as the reason for the sanctions. 

The sanctions follow recent meetings in Madrid on Sept 14–15, where Chinese and US officials discussed trade, technology, and security issues, including concerns related to TikTok. 

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Last Friday, Chinese President Xi Jinping and US President Donald Trump spoke by phone, a conversation the latter described as “very productive.”

China on Thursday called on the United States to lift what it described as “unreasonable tariffs” and to create better conditions for expanding bilateral trade, according to state-run Xinhua News.

Commerce Ministry spokesperson He Yadong said that US unilateral restrictions remain the main obstacle to normal economic cooperation between the two countries.

“It is hoped that the United States will work in the same direction with China to create favorable conditions for the stable, healthy, and sustainable development of China-US economic and trade relations,” he added.