In January 2025, amid escalating tensions with the United States, China announced a series of punitive measures targeting American companies. On January 2, ten U.S. companies were added to China’s Unreliable Entities List, followed by seven more on January 14 and an additional four shortly thereafter.
As with previous sanctions, these actions have been dismissed by some as largely symbolic due to minimal economic ties between the target companies and China. Additionally, because these penalties were imposed during the U.S. presidential transition, they have been interpreted as both a warning to the incoming administration and a strategic move to strengthen China’s bargaining position ahead of potential negotiations.
However, these actions should not be viewed as a stand-alone development. They are part of China’s broader efforts to modernize its economic statecraft. While the narrative of “symbolism” may have been valid in the early stages, it is becoming increasingly untenable as Beijing demonstrated a growing willingness and capability to impose substantive costs.
For instance, on October 10, 2024, China imposed sanctions on Skydio, the largest U.S.
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