China has imposed export controls on 10 American military-related companies, escalating a technology and defence standoff with the United States even as the two governments attempt to stabilise their broader relationship. Beijing's Commerce Ministry announced the measures on Monday, framing them as a direct response to Washington's decision earlier this month to add approximately 80 companies — including Chinese tech giants Alibaba and Baidu, and electric vehicle maker BYD — to a Pentagon list of firms suspected of supporting China's military.
The 10 targeted American entities include Aveox, an aerospace defence contractor, Oshkosh Defence, known for producing military vehicle fleets, and rare earth mineral producers MP Materials and USA Rare Earth — the latter a company specifically aimed at reducing American dependence on Chinese rare earth supplies, a strategic vulnerability Washington has long sought to address. Under the new controls, Chinese exporters are prohibited from providing so-called "dual-use" goods — products with both civilian and military applications — to any of the listed firms. Crucially, the ban extends beyond US borders: companies or individuals in any third country are also barred from transferring Chinese-origin dual-use items to the sanctioned entities, closing off potential workarounds through intermediary nations.
In a simultaneous move, China's Finance Ministry announced that Chinese government agencies and public procurement bodies may no longer purchase products from 46 US firms, a broader list that includes subsidiaries of Lockheed Martin, Raytheon, Boeing's defence division, General Dynamics, and Anduril Industries. Companies with US investment stakes operating inside China are exempt from the procurement ban, which took effect immediately.
The timing is diplomatically sensitive. The measures come roughly one month after US President Donald Trump visited Beijing for talks with President Xi Jinping, during which both sides expressed a desire to reduce tariffs and ease tensions. Trump has since sought to project an image of strong bilateral ties, publicly thanking Xi at last week's G7 summit in France for China's neutrality during the US conflict with Iran. Xi has been invited to Washington this autumn, making the current escalation a potential complication for that visit.
The exchange of restrictions underscores how deep the structural rivalry between the world's two largest economies runs, even during periods of surface-level diplomacy. While neither side's recent actions constitute sweeping sanctions, they steadily narrow the space for cooperation in critical technology and defence supply chains — sectors both governments consider central to long-term strategic competition.