China declared on Monday that it will place 10 U.S. companies, including two rare earth firms, on its export control list and impose restrictions on 46 American firms from participating in government procurement. The measures are in response to Washington’s decision to add additional Chinese companies to a Pentagon list of entities it alleges are linked to China’s military.
The Ministry of Commerce stated that 10 American companies—including Aveox, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace & Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials, and USA Rare Earth—have been added to its export control list, prohibiting the export of dual-use items of Chinese origin to these firms.
A spokesperson for the ministry said the measures were taken in response to what it described as ‘malicious actions’ by the U.S. government. Earlier this month, the Pentagon updated its 1260H list by adding several Chinese technology companies it alleges are linked to China’s military, including Alibaba Group, Baidu, and automaker BYD.
Separately, the Ministry of Finance declared it would bar 46 U.S. companies, primarily defense contractors, from participating in government procurement projects. However, the restrictions do not apply to foreign-funded, locally registered entities affiliated with the excluded firms.
The Ministry of Commerce, in its statement, cited provisions of China’s export control laws governing dual‑use items—products with both civilian and military applications—as the basis for its decision. It also emphasized the need to safeguard national security and comply with international non-proliferation obligations. The notice further required that any ongoing exports falling within the scope of these regulations be halted immediately.
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