Company: YSXT
Filing Date: 2025-07-31
Form Type: 20-F
Source: 0001410578-25-001545
Chunk: 14

Company: YSX Tech Co., Ltd
Filing Date: 2025-07-31
Form: 20-F
Item: Item 3
Chunk 14
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 tensions in international relations, particularly between the United States and China in recent years. The U. S. government has made statements and taken certain actions that may lead to potential changes to U. S. and international trade policies towards China. While the “ Phase One” trade agreement was signed in January 2020, trade relations between the two nations remain strained and highly uncertain. Since then, bilateral tensions have persisted and, in some areas, intensified - particularly in matters related to national security, technology transfers, supply chain independence, and data governance. In 2023 and 2024, the U. S. government expanded export controls on advanced semiconductor technologies and equipment to China, imposed investment restrictions in certain sectors (e. g., artificial intelligence, quantum computing, semiconductors), and increased scrutiny on inbound and outbound capital flows involving strategic industries. These moves have been met with retaliatory actions by the Chinese government, including restrictions on critical raw materials (e. g., rare earth elements, gallium, and germanium), heightened regulatory oversight on foreign businesses, and broader initiatives to reduce dependence on foreign technology and supply chains. In 2025, the U. S. government implemented sweeping new import tariffs, including a 10% universal tariff and significantly higher levies on Chinese goods - escalating to rates as high as 125% - which triggered retaliatory measures from China and other trade partners. These and other policy shifts - including export controls, restrictions on capital flows, and sector-specific tariffs - have intensified global trade uncertainties and contributed to supply chain disruptions, inflationary pressures, and shifting competitive dynamics.

In addition to trade related tensions between China and the United States, the U. S. government escalated tensions between the U. S. and China in recent years by revoking Hong Kong’s special trading status. Also, the Congress of the United States enacted the Uyghur Forced Labor Prevention Act (UFLPA) in December 2021. Effective from June 21, 2022, the UFLPA creates a rebuttable presumption that goods mined, produced, or manufactured (wholly or in part) in China’s Xinjiang Uyghur Autonomous Region are made with forced labor, where goods designated as such will be subject to an import ban into the United States. The President of the United States may also impose sanctions on companies that knowingly engage in, are responsible for, or facilitate forced labor in Xinjiang. The VIE, Xinjiang YSX, and two of its subsidiaries (collectively, the “ Xin