
Double-edged sword: US probe into China's drone dominance is a risk, analysts say
a global lead – in a move that could pave the way for tariffs and give Washington leverage in trade negotiations between the world's two largest economies, analysts said.
The US Bureau of Industry and Security released a document on Monday, seeking public comments as it moves forward with the investigation, which began on July 1 under
'Section 232' of the Trade Expansion Act.
'Interested parties are invited to submit written comments, data, analyses or other information pertinent to the investigation,' the notice's authors said.
While the investigation does not explicitly name China, it will examine American reliance on imported unmanned aircraft systems – including drones used for commercial, industrial and military purposes –
as well as polysilicon , a critical material used in solar panels and semiconductors. Beijing holds a dominant position in both sectors.
Section 232 grants the US president the power to impose duties if a Department of Commerce investigation finds that certain imports threaten national security. Trump has used the law to levy tariffs on steel, aluminium and cars, and the 50 per cent copper tariff he threatened last week also came from a Section 232 probe.
Alfredo Montufar-Helu, a senior China-based adviser to C-suites, said he 'wouldn't be surprised' if Washington's investigation was used to gain leverage for future trade negotiations with China.
But he also cautioned that the move was a double-edged sword.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


South China Morning Post
24 minutes ago
- South China Morning Post
Hong Kong 47: third batch of opposition activists freed after 4 years in prison
Three more activists among the 47 Hong Kong opposition figures charged in the city's largest national security case for conspiracy to commit subversion have been released from prison. Former union leader Carol Ng Man-yee, and activists Nathan Lau Chak-fung and Frankie Fung Tak-chun were the third batch of defendants in the landmark case to complete their four-year-and-five-month sentences. The trio, who pleaded guilty, were separately sent to their residences in vans from the Lo Wu Correctional Institution and Stanley Prison on Monday morning. Asked about his feelings, Lau put on a smile and shook his head while walking towards his block. Nathan Lau was freed from prison after completing his sentence under the national security law. Photo: Handout Lau, 28, was the president of the student union at Hong Kong Shue Yan University and a standing committee member of the Hong Kong Federation of Students. Ng, now 54, was a flight attendant at British Airways. She founded the BA Hong Kong International Cabin Crew Association and had mounted several legal challenges against the employer over wages, anti-union practices, age and sex discrimination.


South China Morning Post
an hour ago
- South China Morning Post
Hong Kong stocks kick off trading on a strong note after US-EU trade deal
Hong Kong stocks started the week on a solid note after the US and the European Union (EU) agreed on a trade deal with a lower-than-expected tariff rate that could prevent the global economy from slipping into a recession. The Hang Seng Index rose 0.6 per cent to 25,533.23 at 10.07am local time, while the Hang Seng Tech Index dropped 0.1 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both climbed 0.2 per cent. China Life Insurance rallied 5.9 per cent to HK$24.10 and New Oriental Education & Technology rallied 3.9 per cent to HK$37.30. Ping An Insurance Group added 2.6 per cent to HK$56.10. The framework trade deal between the US and the EU included a 15 per cent tariff on European goods entering the US and significant EU purchases of American energy and military equipment, according to President Donald Trump. The US also struck a trade agreement with Japan last week, which triggered a rally in global equities amid fading fears of a trade war. Traders were gearing up for an eventful week: a third round of trade talks between China and the US are underway in Sweden. In addition, the US Federal Reserve will unveil its decision on interest rates and bellwether companies including HSBC Holdings are due to release first-half earnings reports.


South China Morning Post
2 hours ago
- South China Morning Post
US to release result of chip import investigation in 2 weeks
The Trump administration would announce the results of a national security investigation into imports of semiconductors in two weeks, US Commerce Secretary Howard Lutnick said on Sunday, as President Donald Trump suggested higher tariffs were on the horizon. Lutnick told reporters after a meeting between Trump and European Commission President Ursula von der Leyen that the investigation was one of the 'key reasons' the European Union sought to negotiate a broader trade agreement that would 'resolve all things at one time'. Trump said many companies would be investing in semiconductor manufacturing in the US, including some from Taiwan and other places, to avoid getting hit by new tariffs. He said von der Leyen had avoided the pending chips tariffs 'in a much better way'. Trump and von der Leyen announced a new framework trade agreement that included across-the-board 15 per cent tariffs on EU imports entering the US. Trump said the agreement included cars, which face a higher 25 per cent tariff under a separate sectoral tariff action.