U.S. sanctions tools against China are now choking American companies

The U.S. sanctions against China have finally turned into a boomerang, striking back at the United States itself.

On the 4th, Reuters cited sources saying that after China added several U.S. supply chain tracing agencies to its export control list, some Chinese rare earth suppliers have already refused to ship goods to American firms—claiming that delivering to U.S. companies would mean cooperating with U.S. supply chain tracing agencies' reviews, which would violate China's prohibitions.

The report noted that during previous talks, the U.S. had raised concerns over this issue, but China countered by stating it was the U.S. that first violated the Busan Consensus between China and the U.S.

The Chinese countermeasures referred to by Reuters were likely those announced on August 5 by China's Ministry of Commerce, targeting six entities in the U.S., including "Altana Technologies" and "Vite Group," as well as a U.S. compliance testing company.

These listed entities are not ordinary businesses—they specialize in supply chain tracing and act as technical enforcers for U.S. government and congressional sanctions against China. Among them, the Responsible Minerals Initiative (RMI), under the U.S.-based Responsible Business Alliance, is the core tool used in auditing rare earth supply chains.

Therefore, once these U.S. entities were placed on China’s export control list, a rather darkly humorous situation emerged: the very tools the U.S. used to restrict China’s supply chains have now become obstacles for American companies seeking to procure rare earth materials.

Reuters did not disclose how many Chinese suppliers are currently refusing to deliver to U.S. firms, but mentioned that some American companies have been waiting over half a year for approval of rare earth procurement licenses, leaving their raw material supplies highly uncertain.

Thus, if the U.S. continues to refuse to correct its violation of the Busan Consensus and persists in using unilateral sanctions and supply chain audits as pressure tactics, these American companies may have no choice but to remain stuck in prolonged delays.

Original article: toutiao.com/article/1875489398855744/

Disclaimer: This article represents the personal views of the author