China warns US against tech curbs ahead of Xi Jinping’s visit, escalating tensions that ripple through crypto markets

China just dropped a not-so-subtle reminder that it has economic ammunition of its own. On August 5, Beijing sanctioned at least six US entities and slapped strict new export controls on drones headed to America, all while warning Washington that additional tech restrictions would be met with further retaliation. The timing is not accidental. Xi Jinping is scheduled to visit the US on September 24 for talks with President Donald Trump, and technology, particularly AI, sits at the top of the agenda. What Beijing actually did China’s Ministry of Commerce targeted entities including Applied DNA Sciences and Compliance Testing LLC with sanctions. Drone exports to the US now require case-by-case government review, effective immediately, covering unmanned aerial vehicles and key components. These moves were a direct response to recent US actions. The FCC imposed import bans on Chinese drones, and additional Chinese companies were listed under the Uyghur Forced Labor Prevention Act. Beijing framed its retaliation as “restrained,” which in diplomatic speak means “we could do a lot worse, and you should know that.” This latest episode follows Trump’s visit to Beijing in May, which evidently...