The move was the latest escalation in the back and forth between Beijing and Washington over products considered vital to national security.

In the latest escalation of trade tensions between the world's two largest economies, China on Thursday announced export control measures targeting 28 U.S. companies and added 10 U.S. companies to a list of entities barred from doing business in China.

The Chinese leader projected confidence amid Beijing’s economic struggles and ahead of the inauguration of Donald Trump, set to take a hard line on China.

President Xi Jinping reiterated in his New Year’s speech that no one can stop China's reunification with Taiwan. Beijing has beefed up its military presence near Taiwan, sending warships and planes almost everyday into the waters and airspace around the self-governed island of 23 million people.