
China's countermeasures and tighter drone export controls: where should a company trading with both the US and China stand?
On August 5, 2026, China's Ministry of Commerce announced countermeasures against seven US entities and tightened export controls on drone-related dual-use items headed to the United States, on the same day. The countermeasures bind "organizations and individuals within China," which means Chinese subsidiaries of Japanese companies are directly covered. Here are the four different Chinese lists, where Japan already stands, and how to position a business that trades with both sides.
