China has announced sweeping export controls targeting ten American companies involved in defence and rare earths mining.

The decision was unveiled by Beijing’s commerce ministry as a direct response to Washington’s recent expansion of its blacklist of Chinese firms accused of aiding the People’s Liberation Army.

The announcement comes just a month after President Donald Trump’s visit to Beijing, where he met Xi Jinping in an effort to stabilise relations. Despite pledges to reduce tariffs, tensions have escalated as both sides continue to restrict each other’s access to critical technologies and defence sectors.

Washington’s updated blacklist included eighty companies and subsidiaries, among them Chinese tech giants Alibaba, Baidu and BYD. Beijing’s retaliation was swift, with the commerce ministry stating the new measures were necessary to safeguard national security and counter what it described as the US government’s “egregious act”.

The ten American entities now facing restrictions include aerospace contractor Aveox, which holds defence contracts with the US military, and Oshkosh Defence, a producer of military vehicle fleets.

Rare earths producers MP Materials and USA Rare Earth were also named, reflecting China’s leverage in the global supply of critical minerals.

Under the new rules, exporters are prohibited from supplying dual‑use items to the listed companies. The ministry ordered that any ongoing export activities must cease immediately. It further clarified that the ban extends to organisations or individuals in any country transferring Chinese‑origin dual‑use items to these entities.

In parallel, China’s finance ministry announced a procurement ban on products made by forty‑six US firms. The list includes major defence contractors such as Lockheed Martin, Raytheon, Boeing’s defence division, General Dynamics and Anduril Industries, alongside several aerospace companies.

The finance ministry specified that companies with US investments operating within China would be excluded from the restrictions. It confirmed the measures would take effect immediately, reinforcing Beijing’s stance against American defence suppliers.

Many of these firms had already faced sanctions in 2024 and 2025 due to their involvement in US arms sales to Taiwan. Taipei continues to rely heavily on Washington’s support to counter Beijing’s growing military pressure. China claims Taiwan as part of its territory and has not ruled out the use of force to achieve unification.

US Secretary of State Marco Rubio recently stated that a proposed US$14 billion arms package for Taiwan was under review. This underscores Washington’s ongoing commitment to Taipei’s defence despite Beijing’s objections.

President Trump has attempted to project an image of strong bilateral ties since his May meeting with Xi. At the G7 summit in France last week, he publicly thanked the Chinese leader for maintaining neutrality in the US conflict with Iran, as both countries agreed to an initial ceasefire.

China’s latest measures highlight the deepening rivalry between the two powers, particularly in defence and technology. Analysts warn that the restrictions could disrupt supply chains and intensify competition in rare earths and advanced military systems, further straining the fragile truce established during recent high‑level talks.

AFP