China has imposed new export controls on 10 United States companies linked to defence and rare earths mining, escalating tensions with Washington in response to fresh American restrictions on Chinese firms, Beijing said on Monday.
The move comes roughly a month after US President Donald Trump visited Beijing in an effort to stabilise strained relations during talks with Chinese President Xi Jinping.
Although both sides had agreed to work towards easing tariffs, relations have since deteriorated as Washington and Beijing continue to target each other in areas including technology and defence.
Earlier this month, the US released a new blacklist of 80 companies and their subsidiaries, accusing them of supporting the Chinese military.
The list included major Chinese firms such as Alibaba, Baidu and electric vehicle manufacturer BYD, prompting threats of retaliation from Beijing.
China’s commerce ministry said the latest export controls were introduced “in response to the US government’s egregious act of adding to its so-called ‘Chinese military enterprise list’”, adding that the measures were also intended to “safeguard national security”.
The 10 entities affected include Aveox, which holds aerospace defence contracts with the US military, and Oshkosh Defense, a producer of military vehicle fleets. US rare earths producers MP Materials and USA Rare Earth are also among those listed.
Under the new rules, exporters are banned from supplying dual-use items to the designated companies.
The commerce ministry said “any relevant export activities currently underway must cease immediately”.
The restrictions further extend beyond the US, stating that the ban applies to “organisations or individuals in any country or region… transferring or providing dual-use items originating in China to said entities”.
In a parallel move, China’s finance ministry announced restrictions on public procurement, prohibiting agencies from purchasing products made by 46 US firms.
These include major defence contractors such as Lockheed Martin, Raytheon, and Boeing’s defence division.
Divisions of General Dynamics and Anduril Industries, alongside several aerospace companies, were also included on the list.
However, firms with US investments operating inside China are exempt, according to the finance ministry, which said the measures take effect immediately.
Many of the companies targeted had already been sanctioned in 2024 and 2025 over US arms sales to Taiwan.
Taiwan remains a major flashpoint, with the US providing military support to the island, which Beijing claims as part of its territory and has not ruled out taking by force.
US Secretary of State Marco Rubio recently said a proposed US$14 billion arms package for Taiwan was “under review”.
Since his meeting with Xi in May, Trump has continued to project optimism about US-China relations, thanking the Chinese leader at the G7 summit in France for staying “neutral” during the United States’ standoff with Iran, which recently saw an initial ceasefire agreement.
