News / China and the US enter the new year lists with 'tit-for-tat' trade jousts

Setting the stage for the return of Donald Trump to the White House, China and the US have kicked-off 2025 with what appear to be “tit-for-tat” efforts to scupper each another’s commercial interests in their respective jurisdictions.

Yesterday, The Loadstar reported that the US Department of Defense had added Cosco and China Cargo Airlines to its list of Chinese commercial interests considered “military assets”, and responding today, China’s largest container line rubbished that description and said it “always adhered to local laws and regulations in its multinational operations”.

Noting it would “engage relevant US authorities to clarify the facts” over the designation, it stressed to customers that its inclusion did not signify sanctions on export controls.

It marks the second time in a decade Cosco has found itself ‘blacklisted’ by the US, following being sanctioned, during Mr Trump’s first administration, for delivering oil to Iran.

Ami Daniel, CEO of maritime risk analytics firm Windward, noted on LinkedIn that those sanctions had forced Cosco “to redo 3,500 charter deals immediately”.

While the new list inclusion carries no specific penalties, it aims to discourage US and western companies from conducting business with those listed.

Indeed, there has been some confusion over what a company’s inclusion on the DoD list of ‘designated entities operating in the US’ could mean for its operations, or for those contracting with it.

Some reports have suggested that, from 2026, legal changes in the US will prohibit the Pentagon from contracting with companies featured on the list. And as of 2027, that it would also be blocked from procuring “goods or services that include the listed companies in their supply chains” – although at the time of press The Loadstar was still awaiting confirmation of this from the Pentagon. 

However, Brandon Fried, executive director of the Airforwarders Association and a familiar face in Washington DC, told The Loadstar inclusion on the list carried “significant implications”.

He explained that, as things stood, “the impact and actual restrictions remained unclear” and inclusion was indicative of “heightened scrutiny rather than immediate operational bans”. But he added: “Of course, the situation can rapidly change.”

He continued: “Being on the list highlights the companies’ alleged connections to the Chinese military. It primarily serves as a guideline for federal agencies to exercise caution when engaging in contracts with them.

“Thus, the list acts as a tool for the US administration to assess entities while implementing broader economic or trade restrictions, including potential sanctions.”

Such scrutiny may offer beleaguered US aircraft manufacturer Boeing something of a reprieve, as its ‘year to forget’ (2024) also saw the emergence of a Chinese challenger.

Also known as the Commercial Aircraft Corporation of China, Comac also found itself on the list, just as it was lining up to challenge the Airbus-Boeing duopoly that has dominated the aviation world for decades.

The Shanghai-headquartered manufacturer last year ramped up production of its narrowbody C919, and, according to Cargo Forwarder, is looking to begin pushing its long-haul C929 by 2027.

For Boeing, the emergence of a new rival could not come at a worse time, with the C919 identified as a rival to the B737 and a series of accidents involving a variant of the 737 last year sent its stock price plummeting some 25%.

As things stand, the reach of the Chinese aircraft has largely been limited to its domestic market, benefiting from state subsidies.

But it bears noting just days before the US blacklist was published, China’s Ministry of Commerce issued its own dual-use export control list, prohibiting exports that may be supporting a manufacturer of items with both commercial and military capabilities.

One of Boeing’s subsidiaries, Boeing Defense, Space and Security, found itself included and potentially facing sanctions.

Mr Fried said this was not the first time the aircraft manufacturer’s defence division had been sanctioned by Beijing, adding that while it may restrict Boeing’s business with Chinese defence-related projects, “it was unlikely to severely impact its commercial manufacturing”.

Another source agreed, telling The Loadstar: “Boeing delivered 53 aircraft to airlines and customers based in China over the first 11 months of 2024.

“China needs Boeing as Airbus and Comac, nor the two combined, are able to meet China’s demand for their national transportation needs.”

Asked what this all meant for 2025 and beyond, director of strategic business development at Delmia Adrian Wood told The Loadstar: “It falls into a category of ‘supply chain disruption’, just like natural disasters of non-political upsets in material or labour supply.

“In this decade, we expect disruption to occur – the key is to have the agility and visibility to react and develop the best possible plan in response.”