China hits back at US with sanctions and tighter drone export rules

The tit-for-tat sanctions come weeks ahead of an expected summit between Chinese leader Xi Jinping and President Donald Trump in the US next month, as the world’s two largest economies struggle to maintain what they’ve called “constructive strategic stability” amid an intensifying tech rivalry.

Shares of China’s leading optical-module makers clawed back early losses on Wednesday after analysts downplayed the impact of proposed US restrictions that could block the firms from future American AI data centres.

China has announced a series of economic measures against the United States, including export controls on drones and a ban on trade with six American entities

The FCC could still modify or shelve the restriction, Reuters reported.