China has imposed export controls on ten US companies in the defense and rare earth sectors. The Chinese Ministry of Commerce stated on Monday that the move was a response to the US designating a number of Chinese companies as supporters of the Chinese military—a move it described as “outrageous.” The measure is also intended to protect “national security.”
The US companies subject to export controls imposed by China include, among others, Aveox and Oshkosh Defense, which operate in the defense sector. Also affected are MP Materials and USA Rare Earth, producers of rare earth elements. Chinese exporters are prohibited from supplying dual-use goods to these companies.
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Meanwhile, the Chinese Ministry of Finance announced that Chinese public procurement agencies are prohibited from purchasing products from 46 US corporations, including defense contractors Lockheed Martin and Raytheon and the defense division of aircraft manufacturer Boeing. Companies with US investments in China are exempt from the measure.
Two weeks ago, the US Department of Defense designated companies such as online retailer Alibaba, internet giant Baidu, and automaker BYD as supporters of the Chinese military. Although the listing entails few immediate legal consequences for many of the companies, it is viewed as a move that could precede further punitive measures. Beijing immediately criticized the US list sharply and threatened retaliation.
After taking office again in early 2025, US President Donald Trump had ignited a bitter trade war with China by imposing special tariffs. In October, both sides agreed to a temporary truce in the dispute. In mid-May, Trump traveled to Beijing for a state visit. Chinese President Xi Jinping is planning a reciprocal visit to Washington in the autumn. However, relations remain tense.
Author: AFP – fs/gav – Translated by Blackout News
Sources: AFP Press Portal