The big picture: The Trump administration is reportedly considering new restrictions on the export of products containing American software to China. A final decision has not yet been made, but Beijing has already vowed to retaliate if the plan is implemented, further escalating the ongoing trade war between the two nations.
The proposed curbs would apply to a wide range of consumer and industrial products, from laptops to jet engines powered by software from American companies. The news comes ahead of a critical round of trade negotiations between the two countries in Malaysia later this week.
The report was confirmed by Treasury Secretary Scott Bessent during a White House briefing on Wednesday. When asked whether the administration is considering export restrictions on US software-powered products to China, Bessent said all options are "on the table," adding that any decision would be made "in coordination with our G-7 allies."
The White House and the Commerce Department did not comment on the report, but a spokesperson for the Chinese embassy said Beijing opposes the imposition of "unilateral long-arm jurisdiction measures" by the US and will take "resolute measures to protect its legitimate rights and interests" if Washington implements the proposed restrictions.
Bessent's statement comes amid escalating economic tensions between the US and China. The two countries are scheduled to hold a fresh round of trade talks on Friday, with Bessent set to meet Chinese Vice Premier He Lifeng in Malaysia. Depending on the outcome, President Trump could hold talks with Chinese President Xi Jinping in South Korea later this month.
Trump first proposed the additional export controls earlier this month, stating that he was considering tighter restrictions on US software-powered products sent to China. He also threatened Beijing with additional 100 percent import tariffs from November 1, "over and above any tariff that they are currently paying."
The proposed measures are widely believed to be in response to China's recent curbs on exports of critical rare earth minerals. China produces about 70 percent of the global supply of these minerals, which are used in a wide range of high-tech products, including smartphones, laptops, electric vehicles, wind turbines, fighter jets, and submarines.