As Chinese President Xi Jinping prepares for a visit to the United States next month, trade and technology tensions between the two nations are intensifying. The Trump administration is moving forward with plans to impose tariffs and minimum import prices on polysilicon, a material dominated by China in the global market. In retaliation, China has tightened export reviews on drone-related products and imposed sanctions on U.S. companies and organizations.
According to Bloomberg News on August 5, the Trump administration is expected to announce the results of its investigation under Section 232 of the Trade Expansion Act as early as August 6.
Officials have discussed imposing a minimum 15% tariff on imported polysilicon and applying minimum import prices to wafers, solar cells, and solar modules made from polysilicon raw materials.
Investment bank Ross Capital Partners predicts that the actual tariff rate could rise to between 25% and 35%. However, the final tariff rate and applicable products may change as the Trump administration finalizes the details of the presidential proclamation.
This action is based on the findings of an investigation initiated by the U.S. Department of Commerce in July 2025 under Section 232, which allows the president to impose tariffs or import restrictions if certain products are deemed a threat to national security.
Polysilicon is a key material used in the solar and semiconductor industries. High-purity electronic-grade polysilicon is used in semiconductors found in smartphones and medical devices, as well as precision-guided munitions and aircraft control systems. Lower-purity solar-grade products are used in the production of crystalline silicon solar panels.
The U.S. government aims to protect its polysilicon industry from China's overproduction and low-price strategies while reducing dependence on China in critical supply chains. The U.S. polysilicon industry has also called for strong trade relief measures against products linked to Chinese supply chains during the Department of Commerce's investigation.
In response to the U.S.'s ongoing regulations, China has launched countermeasures. On August 5, the Chinese Ministry of Commerce announced that it would strictly review exports of drones and related components and technologies to the U.S., applying a more rigorous approval process.
China has also suspended cooperation with U.S. certification agencies for mandatory Chinese certifications. As a result, the export procedures for U.S. products such as electrical appliances, computers, communication equipment, and automobiles to China are expected to become more complicated.
In retaliation for U.S. sanctions against Chinese companies over forced labor issues concerning the Uyghur population, China has sanctioned U.S. companies and organizations, including Applied DNA Sciences and Human Rights in China. It has also banned transactions with the certification firm Compliance Testing for supporting U.S. regulations against China.
However, China has refrained from implementing more severe measures, such as tightening rare earth export controls. The state-run Global Times described this response as "generally restrained," warning that it would escalate its response if the U.S. imposes further regulations.
Experts suggest that while China is applying pressure on the U.S., it is also trying to avoid an uncontrollable escalation of tensions ahead of next month's summit. Li Mingzhang, a professor at Nanyang Technological University, noted that China's decision not to use strong measures like rare earth export controls signals a desire to avoid worsening the situation before the summit.
Alfredo Montufar-Helluin, managing director at Ankurra China Advisors, told Reuters that both China and the U.S. seem to prefer targeted measures over sweeping actions, indicating that neither side wants to see tensions spiral out of control.
* This article has been translated by AI.
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