China imposed export controls on 10 US companies operating in the defense and rare earth exploitation sectors, in response to Washington's blacklisting of Chinese businesses.
On June 22, the Chinese Ministry of Commerce announced the imposition of export controls on 10 US companies. This move is a response to "the US government's action to add to the so-called list of Chinese military enterprises", while emphasizing the goal of "national security protection".
This move comes about a month after US President Donald Trump visited Beijing, seeking to stabilize strained bilateral relations in talks with Chinese President Xi Jinping. Although the two sides have agreed to efforts to reduce tariffs, relations continue to be challenged as both continuously restrain each other in the fields of technology and defense.
This month, Washington announced a new blacklist of 80 companies and subsidiaries that the US believes are supporting the Chinese military, including major technology corporations such as Alibaba, Baidu and electric vehicle manufacturer BYD. This move has caused Beijing to threaten retaliation.
Among the 10 entities controlled for export by China are Aveox (a company holding air defense and space contracts with the US military) and Oshkosh Defense, specializing in manufacturing military vehicles. The list also includes two US rare earth manufacturers, MP Materials and USA Rare Earth.
The Chinese Ministry of Commerce said that exporters are prohibited from supplying dual-use goods to entities on the list, and requested that "all related export activities taking place must cease immediately". The ban also applies to "organizations or individuals in any country or region" who transfer or supply dual-use goods originating from China to listed entities.
At the same time, the Chinese Ministry of Finance announced a ban on agencies participating in public procurement from purchasing products from 46 US companies, including Lockheed Martin, Raytheon and Boeing's defense division. The list also includes branches of General Dynamics and Anduril Industries - two major US military contractors - and some other aerospace companies. US-invested companies operating in China are exempt from application. These measures take effect from June 22.
Since meeting with Chinese President Xi Jinping in May, Mr. Trump has made efforts to build a public image of strong bilateral relations, even thanking the Chinese leader at the G7 summit in France for maintaining a "neutral" attitude in the conflict between the US and Iran.
