Beijing —  

The road to Chinese leader Xi Jinping’s expected visit to the United States next month is shaping up to be rockier than Beijing would have hoped.

Weeks ahead of the state visit, the world’s two largest economies have revived a tit-for-tat exchange of sanctions, with Beijing unveiling multiple measures against US firms or interests in what it said was retaliation for “erroneous” American moves.

The US has banned imports of new humanoid robots (largely produced in China); sanctioned Chinese shipping operators alleged to be handling Iranian fuel; placed more than 40 Chinese firms on an entity list for alleged human rights violations; and added two top civilian universities to a Pentagon blacklist. It’s also threatened to sanction Chinese AI firms.

That left Beijing with “no choice but to take necessary countermeasures,” its Commerce Ministry said Wednesday as it unveiled a package that sanctioned seven US firms; upped controls on the export of drones and their tech to the US; and launched an investigation into certain office equipment running foreign software.

A separate measure also suspends a fast-track for US factories to certify goods like electrical appliances for the Chinese market. The ministry said it was specifically retaliating against the recent US entity listing of Chinese firms, as well as the robotics and previous tech-related bans issued by the US Federal Communications Commission.

The tit-for-tat brings up echoes of last year, when the rivals were locked in a blistering trade war. It also raises the question of whether a new period of escalation – if it spirals further – could push Beijing to put Xi’s upcoming trip on ice.

So far, China’s bevy of measures – which its own spokesperson described as “restrained” – suggests its leaders hope to keep things on track for the September summit. That’s especially as the meeting is seen as a chance for Xi and Trump to discuss what is emerging as their fiercest area of rivalry: AI.

“China values the hard-won stability of China-US economic and trade relations and hopes the United States will work with China in the same direction,” a commerce ministry spokesperson said Wednesday – while also threatening “further countermeasures” if not.

Observers and people close to policy circles in China say that Beijing strongly values preserving the high-level lines of communication with Trump, who’s seen as relatively China-friendly compared with many more hawkish members of his cabinet.