The trade war between the United States and China is intensifying as both nations implement non-tariff measures (NTMs) alongside existing reciprocal tariffs.

Starting April 10, 2023, tariffs are set to reach 34%, marking an escalation in economic hostilities initiated by the Trump administration during his presidential term.

Recent statements from the Chinese government indicate a commitment to adopt countermeasures and to be prepared to escalate further if retaliatory actions continue.

In a significant move, the Chinese government has placed 16 US companies on its export control list for dual-use materials, which can be utilized for both civilian and military applications.

This action prohibits US firms producing goods in China from exporting their outputs, necessitating government approval to transport their products out of the country whenever Chinese authorities deem it necessary.

The justification provided by Beijing is to protect national security and comply with international non-proliferation agreements.

This shift represents a qualitative reaction as opposed to a quantitative one; while tariffs have a broader impact, NTMs target specific sectors and products.

Among the companies affected are High Point Aerotechnologies, Universal Logistics, Source Intelligence, and Cyberlux Corporation, all of which are involved in the production of sensitive high-value technological materials.

Additional non-tariff barriers have emerged, with China restricting the export of critical raw materials, particularly rare earth elements essential to US technology and defense industries.

Concurrently, China has suspended imports of US agricultural and poultry products, significantly impacting the economies of Republican strongholds, which have shown considerable support for Trump.

Furthermore, Beijing has initiated an antitrust investigation into the Chinese subsidiary of US chemical giant DuPont, a move that adds to the list of measures aimed at US enterprises.

Non-tariff measures, often less conspicuous than tariffs, can have equally detrimental effects on trade.

According to World Trade Organization data, developed countries typically maintain between three to four NTMs for each traded product, affecting 80% of cross-border trade.

These measures include phytosanitary controls, heightened customs inspections, conditional licensing, quotas, and practices impacting competition, such as access to public contracts and subsidies.

As tariffs disrupt supply chains, technology companies like Apple and Nvidia face challenges in exporting products from China, with 90% of Apple’s iPhones assembled or manufactured in the country.

US exporters in China have noted delays in customs approvals for items requiring export licenses, including certain critical minerals.

In response, the US has expanded its 'entity list' to include new Chinese firms, restricting their operations and aiming to curb China’s advancement in high-tech sectors.

This list serves as a principal tool for the Biden administration in restraining Chinese technological growth, particularly in advanced semiconductor, hypersonic weapons, and military technologies.

In parallel, speculations arise about Beijing potentially prohibiting Chinese firms from investing in the US, hindering efforts to revitalize American manufacturing.

Companies like BYD and Gotion have previously invested in the US, but future capital influx for manufacturing will require Beijing's approval.

There have also been suggestions from the European Union to utilize non-tariff measures against the US, particularly targeting tech platforms, which have been subject to scrutiny in recent years.

This evolving trade conflict may be characterized as a form of hybrid warfare, with countries leveraging all available tools, not solely conventional measures.

Online services such as streaming platforms like Netflix and Amazon could become focal points in this ongoing economic rivalry, potentially impacting key supporters of the Trump administration.

The EU has already faced a 20% tariff, and preliminary estimates indicate that US measures affect 70% of its exports to the US, valued at approximately €370 billion.