China has added 10 US-based companies to its export control list and banned government procurement from nearly 50 US firms, two weeks after the Pentagon blacklisted several of China's most prominent companies over alleged military ties.
The Ministry of Commerce announced the export ban on Monday, prohibiting Chinese companies from exporting "dual-use" items—goods that can serve both civilian and military purposes—to the US firms. The list includes rare earth miner MP Materials Corp, rare earth magnet maker USA Rare Earths, and US defense contractors specializing in aerospace, drones, synthetic aperture radar, and ship repair.
Under the order, "foreign organizations and individuals worldwide are also prohibited from transferring or providing Chinese dual-use goods to them," and any ongoing export transactions must be immediately suspended. The Ministry stated the export ban was issued to "protect national security and interests and to fulfill international obligations such as non-proliferation."
Separately, China's Ministry of Finance on Monday banned government procurement from 46 companies, including subsidiaries of major US defense contractors such as Lockheed Martin, Boeing, General Atomics, and General Dynamics. However, locally registered companies funded by the US were exempted.
Experts describe Beijing's orders as retaliatory, though largely symbolic, against the US after the Pentagon in early June added about 80 Chinese companies and their subsidiaries to its list of "Entities Identified as Chinese Military Companies Operating in the United States." That list included e-commerce giant Alibaba Holdings, search engine operator Baidu, and electric vehicle maker BYD.
Analysts say the orders are difficult to enforce in practice, as many listed companies have already moved their supply chains out of China or begun "de-risking" their operations there. Nonetheless, the broad scope of directives from both Washington and Beijing is seen as a sign that the US-China trade war is opening a new front. Observers predict further actions on export controls and investment restrictions from both sides.
