China has imposed export controls on 10 U.S. companies involved in defense and rare earth mining, marking a direct response to Washington's recent blacklisting of Chinese tech firms. The move, announced by China's Commerce Ministry, prohibits the export of dual-use items—goods with both military and civilian applications—to the targeted U.S. firms. Among the affected companies are Aveox, Oshkosh Defense, and rare earth miners MP Materials and USA Rare Earth.
In a parallel action, China's Finance Ministry barred government agencies from purchasing products from 46 U.S. companies, including major defense contractors like Lockheed Martin, Raytheon, and Boeing's defense division. The restrictions, effective immediately, exempt U.S.-funded enterprises operating in China.
The U.S. Defense Department had earlier expanded its list of Chinese firms allegedly linked to the military, adding tech giants Alibaba, Baidu, and electric vehicle maker BYD. China's Commerce Ministry condemned the U.S. move as a violation of the consensus reached between Presidents Xi Jinping and Donald Trump during a May meeting.
Analysts suggest the sanctions may have limited practical impact, as most targeted U.S. firms have minimal business exposure in China. However, the measures underscore escalating tensions between the two nations, despite recent diplomatic efforts to stabilize relations.