China bans imports of Illumina’s gene sequencers right after Trump tariff action

CHINA announced a ban on Tuesday (Mar 4) on imports of genetic sequencers from US medical equipment maker Illumina, just minutes after US President Donald Trump’s additional 10 per cent tariff on Chinese goods took effect.

The ban is part of a series of measures China announced in response to the extra US tariffs and comes after Beijing put Illumina on its “unreliable entity” list in February.

China accounts for about 7 per cent of Illumina’s sales. Gene sequencers help determine the sequence of DNA or RNA, allowing scientists to study genetic variations associated with diseases and diagnose rare genetic conditions.

The ban takes effect from Mar 4.

China’s commerce ministry said in a statement that Illumina had suspended normal transactions with Chinese enterprises and taken discriminatory measures against them.

Responding to Reuters queries, Illumina said it would continue to serve its customers in China and was “committed to operating in compliance with the latest guidelines from the Ministry of Commerce”.

It said the company was assessing the announcement to fully understand the impact on its operations in China.

Beijing refrained from punishing big US household names, as it did when it retaliated against the Trump administration’s February four tariffs, but Illumina was the most high-profile company hit by the latest measures from China.

The company has been under growing scrutiny from Beijing, after two of its Chinese rivals, MGI and BGI, were listed in a US bill that aims to restrict business with several biotech companies on grounds of national security. MGI and BGI have denied such allegations.

In February, China also put PVH Corp, the holding company for brands including Calvin Klein and Tommy Hilfiger, on its unreliable entity list and announced an investigation into Google as part of a wide range of measures targeting US businesses.

Companies added to the list can be subject to fines and a broad range of other sanctions, including a freeze on trade and revocation of work permits for foreign staff. REUTERS