Beijing imposed export controls on 10 US companies involved in defense and rare mineral exploration in response to the US blacklisting several Chinese companies. The Chinese government announced this on Monday.
US President Donald Trump visited Beijing a month after talks with Chinese President Xi Jinping to stabilize strained relations between the two countries.
The two countries have agreed to work to reduce tariffs, but their ties are facing new tests as they outpace each other in technology and defense.
This month, Washington blacklisted 80 companies and their affiliates. The US claims that these companies are helping the Chinese military.
The list includes tech giants Alibaba and Baidu, as well as electric car maker BYD. Beijing has threatened to retaliate against the US.
China’s Ministry of Commerce said in a statement that the new export controls were imposed in response to “extremely aggressive actions” by the US government, such as its inclusion on the so-called “Chinese Military Enterprises List” and “in the interest of protecting national security”.
The 10 companies include Aviox, which has a US military aerospace defense contract, and Oshkosh Defense, which makes military vehicles.
The list also includes US rare earth producers MP Materials and USA Rare Earth.
Companies listed on the list are banned for exporting dual-use (military and civilian) goods, according to the Chinese Ministry of Commerce. Additionally, “any relevant export operations currently underway must be stopped immediately.”
The ban will also apply to “any company or person in any country or region… that transfers or supplies dual-use goods made in China to listed companies,” the statement added.
At the same time, China’s Ministry of Finance said in a statement that state-owned procurement agencies were banned from buying products made by 46 US companies. These include the defense divisions of Lockheed Martin, Raytheon and Boeing. The list also includes divisions of General Dynamics and Enduril Industries, known as important US military contractors. Several space research organizations are also on the list.
US-invested companies doing business in China will be exempted from the ban, according to a statement from the Ministry of Finance. This system will be effective from Monday.
China’s Ministry of Commerce has already imposed sanctions on several of these companies and their affiliates for US arms sales to Taiwan in 2024 and 2025.
Taipei (Taiwan) relies heavily on Washington’s support to counter Beijing’s growing pressure. China claims Taiwan as its territory and does not rule out the possibility of annexing Taiwan by force if necessary.
US Secretary of State Marco Rubio said this month that a proposed $14 billion arms aid package for Taiwan was “under review”.
Since meeting with Xi Jinping in May, Trump has publicly sought to project a stronger image of bilateral relations.
At the G7 summit in France last week, Trump thanked the Chinese leader for remaining “neutral” in the recent US war with Iran.