1.

US–China Summit (May 14 to 15, 2026)

President Trump visited China for the two-day summit, which did not end in the two countries issuing a separate joint statement or agreement. Instead, the results and key points of the talks were disclosed through announcements by the two governments.
 

A.

Key Outcomes (Trade and Investment)

The White House issued a Fact Sheet to announce the results of the summit.^[1]  According to the Fact Sheet, the two countries agreed to establish the US–China Board of Trade and the Board of Investment. In addition, China agreed to purchase US agricultural products and aircrafts. However, regarding rare earths and critical minerals, the Fact Sheet merely stated that “China will address US concerns.”

The Chinese government announced the results of the summit during a press briefing and highlighted the Taiwan issue as one of the main agenda items.^[2]  In addition, the Chinese Ministry of Commerce’s (the “MOFCOM”) press release confirmed that the two countries agreed to establish the Board of Trade and the Board of Investment, and China agreed to purchase US agricultural products and aircrafts. Specifically, the MOFCOM stated that it had agreed, through the Board of Trade, to discuss tariff reductions on products of the same value as those from the US (worth USD 30 billion each).^[3]  However, the MOFCOM merely reaffirmed China’s general stance that it would continue discussions with the US regarding rare earth export controls and strive to ensure the stability of global supply chains.
 

B.

Media Reactions

US and Western media outlets pointed out that the two countries merely maintained their existing trade truce and that there were practical limitations to the operation of the newly established US–China Board of Trade. They also analyzed that the US achieved only limited results, noting that sensitive issues such as rare earths and export controls were not included in the official joint statement. In contrast, the Chinese media assessed the talks as a positive occasion that confirmed the possibility of mutual coexistence and the tensions between the two countries as fully manageable. They also emphasized that China focused on establishing a macro-level strategic position and demonstrated goodwill in maintaining friendly relations.
 

2.

Recent Chinese Foreign Policy and Trade Policy Measures

China has long relied on export controls—leveraging its dominance in supply chains for critical minerals and other resources—to counter sanctions imposed by foreign governments. Recently, however, it has shown a growing tendency to actively adopt and enforce legislation akin to a “blocking statute,” which fundamentally prohibits domestic companies and individuals from cooperating with foreign regulatory actions or investigations.
 

A.

Export Control Against Japan

China announced export control measures against Japan in relation to Prime Minister Sanae Takaichi’s statement on Taiwan.^[4]
 

a.

Prohibition of Dual-Use Item Exports (January 2026): The Chinese government has imposed a complete ban on the export to Japan of dual-use items that could be used by the Japanese military or contribute to the enhancement of Japan’s military capabilities.^[5]  The MOFCOM has warned that it will hold any party—regardless of country or region—legally accountable for violations of these regulations. Therefore, Korean companies should exercise caution, as they may face legal liabilities under Chinese law if they import regulated Chinese goods and re-export the goods to Japan.
 

b.

Additions to Export Control and Watch Lists (February 2026): The Chinese government has added more than 40 Japanese defense-related companies and organizations to its Export Control List and Watch List.^[6]  Exports of Chinese goods to these organizations have been strictly banned, and the review process for export permits has been tightened.
 

B.

Measures Against Unfair Extraterritorial Application and Countersanctions

The Chinese government has recently announced a series of strong measures to block extraterritorial jurisdiction, citing its own laws, in response to sanctions and investigations against China by the US and the European Union (the “EU”).
 

a.

Prohibition of Compliance With US Sanctions (May 2, 2026): In response to the US government’s designation of Chinese companies that purchased and transported Iranian oil as entities subject to sanctions (Specially Designated Nationals List, “SDN”)^[7],  the MOFCOM issued an enforcement order based on the Measures to Prevent the Improper Extraterritorial Application of Foreign Laws and Measures ( effective January 2021), completely prohibiting the authorization, enforcement or compliance with these US sanctions within China.^[8]
 

b.

Prohibition of Cooperation With EU’s Foreign Subsidies Regulation (“FSR”) Investigations (May 16, 2026): The Chinese Ministry of Justice, citing the Regulations on Countering Unjustified Extraterritorial Jurisdiction by Foreign Countries (effective April 2026), has designated the ongoing EU FSR investigation, currently being conducted by the EU’s executive arm, the European Commission, against Chinese companies as an “unjustified extraterritorial jurisdiction measure.”^[9]  It also prohibited all companies operating within China as well as individuals from cooperating with the EU’s investigation.^[10]