How China has expanded its economic toolkit during its trade truce with the US
China has expanded its economic toolkit during its trade truce with the US, broadening its legal leverage, supply chain and critical technology controls, and retaliatory economic measures. China has unveiled new countermeasures, including limiting exports of advanced solar panel technology and authorizing countermeasures against foreign states for 'unlawful extraterritorial jurisdiction'.
China has used its trade truce with the US to broaden its economic toolkit ahead of a summit between the nations. Chinese President Xi Jinping and US President Donald Trump signed an agreement in October to de-escalate the trade war. Since then, China has unveiled new countermeasures, including considering limits on exports of advanced solar panel technology on April 15, 2026. China's State Council issued new regulations authorizing countermeasures against foreign states for 'unlawful extraterritorial jurisdiction' on April 13. China has also taken actions against foreign companies, including prohibiting exports of dual-use items to 20 Japanese entities on February 24. China's commerce ministry has pushed to build a self-sufficient semiconductor supply chain, requiring chipmakers to use at least 50% domestically made equipment for adding new capacity as of December 30, 2025. Beijing has also issued guidance requiring new data centre projects to only use domestically made artificial intelligence chips as of November 5, 2025.
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