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Indian companies sourcing from Chinese suppliers are the latest victims of US-China trade war

This is the latest phase in the US-China technology competition, which now spans supply chain law, export controls, labour compliance, and semiconductor access.

After contending with tariffs, India’s manufacturing sector may now need to navigate competing legal regimes. The United States has long relied on export controls to shape the global flow of technology, components, and equipment. China is now pushing back—most recently through State Council Orders 834 and 835—which empower authorities to investigate and sanction any foreign company or individual deemed to be moving supply chains out of China. As a result, Indian firms manufacturing in India for global brands, while sourcing from Chinese suppliers, could find themselves in the crosshairs.

The two recent Chinese orders represent Beijing’s most sophisticated attempt yet to build a counter-architecture to US export controls. Decree 834, issued on 7 April, protects China’s industrial and supply-chain security. It allows authorities to review actions by foreign entities or individuals and retaliate with measures such as trade and investment restrictions or limits on market access. Decree 835, released a week later, sets out a system to identify and punish foreign actors that comply with Western sanctions or other restrictive measures targeting China. Notably, enforcement can extend beyond companies to their executives, who may face personal legal consequences, including exit restrictions.

The two orders are the newest in a string of regulations China has tested over the past few years. They are more systematic and wide-ranging than Beijing’s earlier, ad hoc responses, such as WTO........

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