China announced sanctions on ten American companies involved in military-related activities. This move comes in response to recent U.S. actions barring certain Chinese tech companies from defense contracts.
The Chinese Commerce Ministry stated that these companies would be restricted from exporting “dual-use” items. These dual-use goods have both military and civilian applications. The ministry emphasized these measures aim to protect China’s national security and counter the U.S. government’s expansion of its List of Chinese Military Companies.
The Finance Ministry added that Chinese government entities are now prohibited from purchasing products from 46 American firms. This list includes multiple units of Lockheed Martin, Raytheon, and General Dynamics. The ministry did not provide specific reasons for this prohibition.
Earlier, the U.S. Defense Department classified several tech firms, such as Alibaba and Baidu, as having ties to the Chinese military. Baidu has strongly disputed this classification, calling it “totally baseless.” This designation prevents these companies from entering U.S. military contracts.
The crackdown on American companies reflects the consensus challenges between Chinese leader Xi Jinping and former U.S. President Donald Trump during Trump’s visit to China in May. The Commerce Ministry clarified that third-party countries are banned from transferring dual-use items from China to the sanctioned U.S. companies. Chinese companies can still seek export approval for essential goods.
The sanctioned U.S. companies include AVEOX in Simi Valley, California; Red Cat Holdings and Teal Drones in South Salt Lake, Utah; IMSAR in Springville, Utah; Jaia Robotics in Bristol, Rhode Island; Ball Aerospace & Technologies in Broomfield, Colorado; Oshkosh Defense in Oshkosh, Wisconsin; L3Harris Maritime Services in Norfolk, Virginia; MP Materials in Las Vegas; and USA Rare Earth in Stillwater, Oklahoma.
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