22 June,2026 02:41 PM IST | Beijing | mid-day online correspondent
Pic/AFP
China on Monday announced sanctions against 10 American military-related companies and imposed procurement restrictions on 46 US firms, escalating tensions between the world's two largest economies amid an ongoing dispute over technology and national security.
The measures come in response to recent actions by the United States, including the addition of several major Chinese technology companies to a list of entities that Washington says have links to the Chinese military.
China's Commerce Ministry said domestic companies would be prohibited from exporting "dual-use" items to the 10 sanctioned American firms. Dual-use products refer to goods and technologies that can be used for both civilian and military purposes.
According to the Commerce Ministry, the restrictions were introduced to safeguard China's national security interests and respond to what Beijing described as the United States' expansion of its list of Chinese military-linked companies.
The ministry also stated that organisations and individuals in third countries would not be allowed to transfer Chinese-origin dual-use products to the sanctioned American entities.
Chinese authorities said companies could apply for special approval in cases where exports were considered genuinely necessary.
The latest measures effectively amount to a ban on the export of dual-use items to the designated firms and represent a tightening of earlier restrictions that primarily relied on licensing requirements.
In a separate announcement, China's Finance Ministry said government entities would be barred from purchasing products manufactured by 46 American companies.
The list includes major defence contractors such as Lockheed Martin and Raytheon Missiles & Defense.
According to Chinese authorities, the restrictions apply to government procurement activities, although US-funded enterprises operating within China will still be permitted to purchase products from the affected companies.
The move broadens Beijing's response beyond export controls and signals a more comprehensive approach to countering US restrictions.
Earlier this month, the US Department of Defense added several Chinese companies, including Alibaba and Baidu, to a list of firms that it says are connected to the Chinese military.
The updated list also included Chinese electric vehicle manufacturers BYD and NIO.
The designation prevents listed companies from securing contracts with the US military. Baidu has rejected the allegation, describing claims that it is linked to the Chinese military as unfounded.
China's Commerce Ministry argued that the American measures contradict understandings reached between Chinese President Xi Jinping and US President Donald Trump during Trump's visit to China in May.
Among the American companies affected by China's latest sanctions are rare earth producers MP Materials and USA Rare Earth, both of which play important roles in the US rare earth supply chain.
MP Materials operates the only active rare earth mine in the United States, while USA Rare Earth is involved in developing domestic rare earth processing and magnet manufacturing capabilities.
Other sanctioned firms include defence and aerospace companies such as AVEOX, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace & Technologies, Oshkosh Defense and L3Harris Maritime Services.
(With inputs from Agencies)
