The new measure, to go into effect August 28, will apply a stricter approvals process to an expanded list of materials that could be diverted to military use. It could require South Korean exporters to take extra administrative procedures to secure export licenses.
Samsung Electronics Co and SK Hynix Inc - the world's top memory chipmakers and suppliers to Apple and China's Huawei Technologies - could face delays if the measures that took effect on Thursday drag on.
After a temporary truce between the nations in December, Washington slapped additional tariffs on 200 billion dollars worth of Chinese goods to 25 percent from 10 per cent, prompting Beijing to retaliate.
The Southeast Asian nation, which shares a border with China, gained orders from trade diversion on tariffed goods equal to 7.9% of gross domestic product in the year through the first quarter of 2019, according to a study by Nomura Holdings Inc.
The decision to terminate India's designation as a beneficiary developing nation under the GSP programmes results from its failure to assure the US that it will provide "equitable and reasonable access to its markets."
In a statement released on Friday, China's Ministry of Commerce said the government "deeply regrets that it will have to take necessary countermeasures." However, the countermeasures that the country might take were not specified.