China imposes export controls on 10 US companies as trade tensions flare

China's Commerce Ministry announced on Monday the imposition of export controls on 10 US companies involved in defense, aerospace, and rare earth mining, in response to Washington's decision to broaden its list of Chinese firms it claims are linked to the country's military.

Chinese exporters are now prohibited from supplying "dual-use" items—goods that can serve both civilian and military purposes—to these entities. The ministry stated the move came "in response to the US government's egregious act of adding to its so-called 'Chinese military enterprise list'" and aimed to "safeguard national security."

Separately, China's Finance Ministry banned government agencies from purchasing products from 46 American companies, including units of Lockheed Martin, Raytheon, and General Dynamics.

The sanctions come a month after US President Donald Trump visited Beijing for talks with Chinese President Xi Jinping, aiming to stabilize relations. While both sides agreed to reduce tariffs, tensions have resurfaced over technology and defense. Earlier this month, the US Defense Department added several major Chinese companies—including Alibaba, Baidu, and BYD—to its list of firms with alleged military ties, barring them from US military contracts. Baidu rejected the accusation, calling it "totally baseless."

China's Commerce Ministry also noted that the restrictions extend beyond Chinese exporters to any organization or individual in any country that transfers or provides Chinese-origin dual-use items to the listed entities.

The 10 companies subject to China's new export controls are: AVEOX (Simi Valley, California), Red Cat Holdings (South Salt Lake, Utah), Teal Drones (South Salt Lake, Utah), IMSAR (Springville, Utah), Jaia Robotics (Bristol, Rhode Island), Ball Aerospace & Technologies (Broomfield, Colorado), Oshkosh Defense (Oshkosh, Wisconsin), L3Harris Maritime Services (Norfolk, Virginia), MP Materials (Las Vegas, Nevada), and USA Rare Earth (Stillwater, Oklahoma).