In a tit-for-tat response to a recent Washington policy that blocks leading Chinese technology firms from accessing U.S. defense contracts, China unveiled new sanctions against 10 American defense and aerospace companies on Monday, according to China’s Ministry of Commerce.
The sanctions impose a blanket ban on Chinese enterprises exporting dual-use items — products engineered for both civilian and military applications — to the targeted American firms. The list of sanctioned entities includes major military drone manufacturers and two leading U.S. rare earth mining producers: AVEOX, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace & Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials, and USA Rare Earth.
Beyond the direct export ban, the policy also prohibits third-party businesses and individuals from retransferring Chinese-origin dual-use goods to the sanctioned American companies. The Ministry of Commerce noted that exceptions will be considered for exports deemed genuinely necessary, where qualified Chinese firms can apply for special approval to ship restricted items.
Chinese authorities framed the move as a necessary measure to protect core national security interests, adding that the action directly counters what Beijing calls the U.S. government’s improper expansion of its so-called Chinese Military Companies list. Earlier this month, the U.S. Department of Defense added prominent Chinese technology giants including Alibaba and Baidu to the restricted list, claiming the firms maintain unacknowledged ties to China’s military. Baidu has publicly rejected the allegation, calling the characterization of the company as a military-linked entity “totally baseless.”
The designation of Chinese firms by the U.S. bars the listed companies from securing any federal defense contracts. Beijing has additionally pointed out that the latest American restrictions contradict the bilateral consensus reached by Chinese President Xi Jinping and former U.S. President Donald Trump during Trump’s official visit to China in May, according to earlier statements from Chinese officials.