BEIJING, China — China announced new sanctions against several American defense-related companies on Monday, escalating a dispute with Washington after the United States expanded restrictions on major Chinese technology firms.
China’s Commerce Ministry said exports of certain “dual-use” goods — products with both civilian and military applications — would be prohibited to 10 U.S. companies. The move follows a recent U.S. decision to place additional Chinese firms on a list of companies alleged to have links to China’s military.
Officials stated that the measures were intended to protect China’s national security and respond to what the ministry described as the U.S. government’s improper expansion of its list of Chinese military-linked companies.
The latest restrictions add to growing friction between Beijing and Washington over technology, defense industries, and national security concerns. The measures could affect supply chains connected to advanced manufacturing, aerospace, and critical minerals.
Export Restrictions Target Defense-Related Firms
According to China’s Commerce Ministry, Chinese companies will be barred from exporting dual-use products to the affected American firms. The ministry also said entities and individuals in third countries would not be permitted to transfer Chinese-origin dual-use goods to the sanctioned companies.
However, authorities indicated that export approvals could still be granted when shipments are considered genuinely necessary.
The companies named in the sanctions include drone manufacturers, aerospace firms, defense contractors, and companies involved in rare earth production. Among those listed are AVEOX, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace & Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials, and USA Rare Earth.
Additional Procurement Restrictions Announced
In a separate action, China’s Finance Ministry said government entities would no longer be allowed to purchase products from 46 American companies.
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The list includes multiple business units associated with major U.S. defense contractors such as Lockheed Martin, Raytheon, and General Dynamics.
The ministry’s statement did not provide a detailed explanation for the procurement ban.
Response to U.S. Technology Restrictions
Earlier this month, the U.S. Defense Department added several Chinese technology companies, including Alibaba and Baidu, to its list of firms that it says are connected to the Chinese military.
The designation prevents those companies from receiving U.S. military contracts.
Baidu rejected the allegation, describing claims that it is a military company as “totally baseless.”
China’s Commerce Ministry argued that the U.S. measures conflict with understandings reached during talks between Chinese President Xi Jinping and U.S. President Donald Trump during Trump’s visit to China in May.
The latest actions underscore continued strategic competition between the two countries, with technology access, defense industries, and critical supply chains remaining key areas of dispute.
Tags: China, United States, Trade Dispute, Sanctions, Defense Industry, Technology, Xi Jinping, Donald Trump
