China hits back at US sanctions with curbs on American defence firms

China on Monday announced sanctions against 10 American militaryrelated companies and imposed procurement restrictions on 46 US firms escalating tensions between the worlds two largest economies amid an ongoing dispute over technology and national securityThe 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 militaryChinas Commerce Ministry said domestic companies would be prohibited from exporting dualuse items to the 10 sanctioned American firms Dualuse products refer to goods and technologies that can be used for both civilian and military purposesChina cites national security concernsAccording to the Commerce Ministry the restrictions were introduced to safeguard Chinas national security interests and respond to what Beijing described as the United States expansion of its list of Chinese militarylinked companiesThe ministry also stated that organisations and individuals in third countries would not be allowed to transfer Chineseorigin dualuse products to the sanctioned American entitiesChinese authorities said companies could apply for special approval in cases where exports were considered genuinely necessaryThe latest measures effectively amount to a ban on the export of dualuse items to the designated firms and represent a tightening of earlier restrictions that primarily relied on licensing requirementsProcurement restrictions imposed on 46 US firmsIn a separate announcement Chinas Finance Ministry said government entities would be barred from purchasing products manufactured by 46 American companiesThe list includes major defence contractors such as Lockheed Martin and Raytheon Missiles amp DefenseAccording to Chinese authorities the restrictions apply to government procurement activities although USfunded enterprises operating within China will still be permitted to purchase products from the affected companiesThe move broadens Beijings response beyond export controls and signals a more comprehensive approach to countering US restrictionsResponse to US action against Chinese technology firmsEarlier 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 militaryThe updated list also included Chinese electric vehicle manufacturers BYD and NIOThe 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 unfoundedChinas Commerce Ministry argued that the American measures contradict understandings reached between Chinese President Xi Jinping and US President Donald Trump during Trumps visit to China in MayRare earth firms among those targetedAmong the American companies affected by Chinas latest sanctions are rare earth producers MP Materials and USA Rare Earth both of which play important roles in the US rare earth supply chainMP 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 capabilitiesOther sanctioned firms include defence and aerospace companies such as AVEOX Red Cat Holdings Teal Drones IMSAR Jaia Robotics Ball Aerospace amp Technologies Oshkosh Defense and L3Harris Maritime ServicesWith inputs from Agencies