China has escalated its trade retaliation against the U.S. by banning Illumina, a leading biotechnology firm, from importing gene-mapping products, citing market rule violations. This action affects a company that relies on China for 7% of its sales. Alongside Illumina, China also targeted 15 other U.S. companies with punitive measures to safeguard national interests, including placing 10 more on an “unreliable entities list.” Beijing’s recent moves mark a shift from previous, more targeted retaliation, indicating a willingness to challenge American firms that could raise concerns among investors. Analyst Joe Mazur suggests this could deter U.S. companies operating in China.
On Tuesday, China indicated that it is ready to escalate its trade retaliations against President Trump by targeting a major American biotech firm.
China’s Ministry of Commerce announced a ban on Illumina, a company based in San Diego, from selling its gene-mapping products in China. Illumina is the leading global supplier of gene-sequencing machines, relying on China for 7 percent of its revenue.
Additionally, Beijing reported it has taken actions against numerous other U.S. firms as part of its ongoing campaign against Washington in response to new tariffs.
Chinese officials specifically named 15 companies, including the drone manufacturer Skydio, for trade measures aimed at “protecting national security and interests.” Moreover, they added another 10 American firms to what is referred to as an “unreliable entities list,” which restricts them from conducting business in China.
These blacklists have increasingly become a common strategy for Beijing in retaliating against Washington amid their escalating trade conflict. However, in the past, China has mostly targeted defense-related firms involved in arms sales to Taiwan and companies with minimal presence in China.
This time, Beijing has taken a stronger stance by prohibiting Illumina from operating in China, accusing the firm of breaching market transaction regulations and showing bias against Chinese businesses. The company was placed on a blacklist last month, alongside PVH, the parent company of Calvin Klein and Tommy Hilfiger.
Illumina responded that it is currently evaluating the implications of Beijing’s decision on its operations in China, but stated it would continue to support its customers in the region.
“We comply with Chinese laws and regulations, and we are dedicated to adhering to the most recent guidelines from the Ministry of Commerce,” an Illumina representative noted in a statement.
Historically, China has hesitated to implement retaliatory measures that could negatively impact American companies’ operations due to concerns about deterring foreign investors. Even after targeting Illumina, Chinese officials worked to mitigate anxieties.
China clarified that it is aiming at “a limited number of foreign entities that threaten China’s national security in compliance with the law,” the commerce ministry stated, also expressing that it “welcomes businesses from around the globe to invest and start operations in China.”
The measures taken against these companies were part of a broader strategy implemented shortly after President Trump’s latest tariff announcement. China’s response also included imposing tariffs on food imports from the United States.
“For China, the ideal outcome would be a complete cessation of trade tensions with the U.S.,” remarked Joe Mazur, an analyst at Trivium, a research firm. “However, that is unlikely to happen, so their only option now is to make an example of a handful of companies.”
With recent developments, it seems that China and the United States are heading toward more trade disputes, even as Chinese academics and former diplomats have visited Washington in recent weeks to initiate discussions about a potential agreement.
Mr. Mazur noted that Beijing might feel more empowered to impose additional punitive actions against American firms operating in China.
“By sending this message,” he explained, “American companies may become more cautious about their standing in China.”
Research contributed by Zixu Wang and Li You.