China signaled on Tuesday that it is willing to go further than before in its trade tit-for-tat with President Trump by hitting a top American biotechnology company.
China’s Ministry of Commerce said it would ban Illumina, a San Diego company, from importing its gene-mapping products in China. Illumina is the world’s leading producer of gene-sequencing machines and counts on China for 7 percent of its sales.
Beijing also said it took action against dozens of other companies from the United States as part of a volley of action against Washington in retaliation for another of tariffs.
Chinese officials singled out 15 companies, including the drone maker Skydio, for punitive trade measures to “safeguard national security and interests.” It also said it added another 10 American companies to what it calls an “unreliable entities list” preventing them from doing any business in China.
Both blacklists have increasingly become go-to tactics for Beijing in striking back at Washington in their escalating trade war. But in the past, Beijing has taken narrower action, targeting defense companies related to arms sales with Taiwan and companies with little to no presence in China.
This time Beijing went further and banned Illumina from doing business in China, accusing it of violating market transaction rules and discriminating against Chinese companies. Beijing put the company on a blacklist last month, together with PVH, the clothing maker behind Calvin Klein and Tommy Hilfiger.
Illumina said it was assessing Beijing’s action “to fully understand the impact on our operations in China,” but that it would continue to serve its customers in China.
“We respect and abide by Chinese laws and regulations, and we are committed to operating in compliance with the latest guidelines from the Ministry of Commerce,” an Illumina spokeswoman said in a statement.
Up until now, China has been reluctant to take retaliatory swipes that would affect American companies’ businesses for fear of spooking foreign investors. Even after targeting Illumina, Chinese officials sought to pre-empt concerns.
China targets only “a small number of foreign entities that endanger China’s national security in accordance with the law,” the commerce ministry said in a statement, adding that it “welcomes companies from all over the world to invest and start businesses in China.”
The action on companies was part of a broader response taken in the minutes after President Trump’s latest round of tariffs. The retaliation from Beijing included tariffs on food imported from the United States.
“For China, the ultimate scenario would be a total reduction in trade hostilities with the U.S.,” said Joe Mazur, an analyst at Trivium, a research firm. “That is not going to happen, and so the only thing they can do right now is make an example of a handful of companies.”
China and the United States appear to be headed for more trade collisions even as Chinese academics and former diplomats have traveled to Washington in recent weeks to try to initiate conversations for a deal.
Beijing may be more emboldened now to take further punitive action against American companies in China, Mr. Mazur said.
“In sending the message,” he said, “you are making other American companies wary of their position in China.”
Zixu Wang and Li You contributed research.
