China Imposes Export Controls on 10 U.S. Defense Firms

China on Monday imposed export controls on 10 U.S. companies involved in defense and rare earths mining, retaliating against Washington's recent blacklisting of Chinese tech firms. The Commerce Ministry stated the move was in response to the U.S. government's expansion of its 'Chinese military enterprise list,' citing national security concerns. The 10 targeted companies include Aveox, Oshkosh Defense, and several drone and rare earth mining firms. Additionally, China's Finance Ministry banned government procurement agencies from purchasing products from 46 U.S. companies, including Lockheed Martin, Raytheon, and Boeing's defense division. The restrictions took effect immediately, though companies with U.S. investments operating in China were exempt. The U.S. Defense Department had earlier added Chinese tech giants Alibaba, Baidu, and BYD to its list of firms allegedly aiding the Chinese military, preventing them from securing U.S. defense contracts. China's Commerce Ministry criticized the U.S. sanctions, stating they contradicted the consensus reached between Presidents Xi Jinping and Donald Trump during Trump's visit to Beijing in May. The ministry also prohibited third-country entities from transferring dual-use items from China to the sanctioned U.S. firms, while allowing Chinese companies to apply for export approval for 'genuinely necessary' goods.