Beijing has tightened restrictions on dozens of American military-linked companies, escalating the technology and trade standoff with Washington.
China has tightened its trade restrictions on U.S. defense-related businesses, adding 10 military-linked companies to its export control list and placing 46 defense and aerospace firms on a government procurement blacklist in its latest response to escalating technology and security tensions between Beijing and Washington.
The new export controls, announced on Monday by China’s Ministry of Commerce, prohibit the shipment of dual-use products—items that can serve both civilian and military purposes—to the 10 designated companies. The ministry said the measures are intended to safeguard China’s national security and fulfill international non-proliferation commitments.
Among the companies facing export restrictions are rare-earth producers MP Materials and USA Rare Earth, along with defense-related firms including Red Cat Holdings, Teal Drones, Oshkosh Defense, Ball Aerospace & Technologies, L3Harris Maritime Services, IMSAR, and Jaia Robotics. Exporters worldwide are also barred from supplying China-made dual-use goods to these entities unless they receive special approval from Chinese authorities.
Separately, China’s Ministry of Finance added 46 U.S. defense and aerospace companies to its procurement restriction list. Under the new rules, Chinese government procurement agencies are prohibited from purchasing products manufactured by these firms. The list includes major defense contractors such as Boeing, Lockheed Martin, Anduril, and several subsidiaries of leading U.S. military suppliers. However, the restrictions do not apply to products manufactured by these companies within China.
The latest measures come weeks after the U.S. Department of Defense updated its own blacklist of Chinese companies with alleged military ties, which includes prominent firms such as Alibaba, BYD, and CATL. Washington has also introduced legislation restricting the Pentagon from sourcing batteries containing materials from foreign entities of concern, including China and Russia, beginning in 2028.
The reciprocal sanctions highlight the deepening technology and trade rivalry between the world’s two largest economies, with strategic industries such as semiconductors, rare earths, defense, and advanced manufacturing increasingly caught at the center of geopolitical tensions.
