China sanctions US tech giants weeks after Pentagon blacklisted Chinese firms
China announced sanctions against 10 US military-linked companies in retaliation for the Pentagon's decision to blacklist Chinese tech firms.
On Monday, China's Ministry of Commerce announced sanctions against 10 US military-related companies, responding to a recent US move that bars leading Chinese tech companies from defense contracts. The ministry stated that Chinese companies would be blocked from exporting dual-use items to these firms, which include military drone makers and rare earth mining companies. Dual-use items are goods that can have both military and civilian applications.
Separately, the Ministry of Finance announced that government entities would be prohibited from purchasing products from 46 US companies, including multiple units of Lockheed Martin, Raytheon, and General Dynamics. A brief statement did not provide a reason for this prohibition.
Earlier this month, the Pentagon added several tech companies, including Alibaba and Baidu, to its list of firms allegedly linked to the Chinese military. Baidu dismissed the claim as "totally baseless." This designation prevents them from obtaining US military contracts.
China's Commerce Ministry had previously stated that the US sanctions contradict the consensus reached between Chinese leader Xi Jinping and US President Donald Trump during Trump's visit to China in May. In Monday's announcement, the ministry also prohibited third-country companies or individuals from transferring dual-use items from China to the sanctioned US firms. However, Chinese companies may apply for export approval for goods that are "genuinely necessary."
The 10 sanctioned companies include AVEOX, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace & Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials, and USA Rare Earth.
China's Commerce Ministry had already sanctioned several of these firms in 2024 and 2025 over US arms sales to Taiwan. Taipei relies heavily on Washington's support to counter pressure from Beijing. US Secretary of State Marco Rubio said this month that a proposed $14 billion arms package to Taiwan is "under review."
