China has imposed export restrictions on 10 American companies involved in defence manufacturing and rare earth mining in retaliation for Washington’s decision to blacklist several Chinese firms.
The latest measures mark a fresh escalation in trade and technology tensions between the world’s two largest economies, despite recent efforts by both countries to stabilise bilateral relations.
The Chinese Ministry of Commerce announced on Monday that the restrictions were introduced in response to the United States’ decision to place a number of Chinese companies on its military-related sanctions list.
According to Beijing, the move is aimed at protecting national security and safeguarding the country’s strategic interests.
The affected US companies include aerospace and defence contractor Aveox, military vehicle manufacturer Oshkosh Defense, as well as rare earth producers MP Materials and USA Rare Earth.
Under the new restrictions, Chinese exporters are prohibited from supplying dual-use goods and technologies to the listed entities.
The ministry stated that any ongoing export activities involving the affected firms must cease immediately.
The restrictions also extend to organisations and individuals outside China who seek to transfer or provide Chinese-origin dual-use products to the sanctioned companies.
The action follows a decision by the United States earlier this month to expand its blacklist of Chinese companies and subsidiaries accused of supporting China’s military development.
Several major Chinese corporations were added to the list, including technology giants Alibaba and Baidu, as well as electric vehicle manufacturer BYD.
Beijing had previously warned that it would respond to the move.
In a related development, China’s Ministry of Finance announced a separate procurement ban affecting 46 US companies.
Under the directive, government agencies and public institutions in China will no longer be allowed to purchase products manufactured by the listed firms.
The companies affected include major US defence contractors such as Lockheed Martin, Raytheon, Boeing’s defence division, General Dynamics and Anduril Industries.
However, the ministry clarified that US-funded companies operating within China would not be affected by the procurement restrictions.
The measures took effect immediately on Monday.
Many of the targeted firms had already been sanctioned by China in previous years over US arms sales to Taiwan.
Beijing considers Taiwan part of its territory and has repeatedly criticised foreign military support for the self-governing island.
The dispute over Taiwan remains one of the most sensitive issues in US-China relations.
Earlier this month, US Secretary of State Marco Rubio disclosed that a proposed $14 billion arms package for Taiwan was under review.
The latest exchange of sanctions comes only weeks after US President Donald Trump visited Beijing for talks with Chinese President Xi Jinping.
During the visit, both leaders pledged to improve communication and work toward easing trade tensions.
Although the two sides agreed to pursue tariff reductions and strengthen economic cooperation, disagreements over technology, defence and regional security continue to test the relationship.
Despite the growing tensions, Trump recently thanked Xi for maintaining a neutral position during the United States’ conflict with Iran, which ended with a temporary ceasefire agreement.
