China adds 10 US firms, including rare-earth miner, to export control list

China's Ministry of Commerce announced on Monday an export ban on 10 US-based companies, barring the export of "dual-use" items that can be used for civilian or military purposes. The list includes rare-earth mine operator MP Materials Corp, rare-earth magnet maker USA Rare Earths, and several US defence contractors specializing in aerospace, drones, synthetic-aperture radar, and shipbuilding.

Under the order, "foreign institutions and individuals worldwide are also prohibited from transferring or providing Chinese dual-use goods to them," and ongoing export transactions must be suspended immediately. The ministry stated the ban was issued to "safeguard national security and interests and fulfil international obligations such as non-proliferation."

Separately, China's Ministry of Finance barred government procurement from 46 companies, including subsidiaries of major US defence contractors like Lockheed Martin, Boeing, General Atomics, and General Dynamics. US-funded, locally registered companies were exempted from the ban.

Experts described Beijing's moves as retaliation for the Pentagon's early June list of about 80 Chinese companies and their subsidiaries identified as "Chinese Military Companies Operating in the United States." That list includes Chinese e-commerce giant Alibaba, search engine Baidu, and electric automaker BYD. While the order does not stop US companies from trading with them, it affects defence contractors' supply chains.

Analysts noted that enforcement may be difficult, and many listed companies have already shifted supply chains out of China. The broad scope suggests further escalation in the US-China trade war. "This is probably just the beginning of the back and forth," said Cameron Johnson, a China-based supply chain consultant. "There is no 'truce' in the US-China trade war. Expect further actions from both sides on export controls and investment restrictions."