BEIJING — China has imposed sanctions on 10 U.S. military-related companies and restricted government procurement from dozens of additional American firms, in what Beijing described as a response to recent U.S. actions targeting major Chinese technology companies over alleged military links, Chinese authorities said this week.
China’s Ministry of Commerce announced on Monday that the 10 U.S. entities had been added to its export control list, prohibiting Chinese exporters from supplying them with “dual-use” items, goods that can have both civilian and military applications. The ministry said the measures were intended to safeguard national security and respond to what it called the U.S. government’s “wrongful expansion” of its list of Chinese military companies.
Among the companies affected are defense-related manufacturers, drone producers and firms involved in the rare-earth supply chain, including MP Materials and USA Rare Earth, according to statements from Chinese authorities. Beijing said any ongoing export activities involving the listed companies should cease immediately.
“The measures are a response to the U.S. government’s malicious practice,” the Commerce Ministry said in a statement released Monday.
In a separate move, China’s Finance Ministry said government agencies would be barred from purchasing products from 46 U.S. companies. The ministry did not provide a detailed explanation for the procurement restrictions, though the announcement came alongside the export-control measures. The affected firms reportedly include major U.S. defense contractors and their subsidiaries.
The Chinese actions followed a decision earlier this month by the U.S. Department of Defense to expand its list of companies it says are linked to China’s military. The updated list included several prominent Chinese firms, among them Alibaba, Baidu, BYD and NIO. Placement on the list restricts direct U.S. Defense Department contracting with designated companies and can lead to additional scrutiny from investors and government agencies.
Several Chinese companies have rejected the U.S. allegations. Alibaba filed a lawsuit this week challenging its designation, arguing that it has no ties to the Chinese military and that the decision harmed its reputation and business interests.
Analysts cited by state media and international news organizations said China’s latest measures appeared calibrated to signal opposition to U.S. restrictions while limiting broader economic disruption. Many of the affected American firms have limited commercial exposure in China, according to public reports.
As of Tuesday, neither government had announced new negotiations related to the sanctions. The Chinese export controls and procurement restrictions had taken effect, while the U.S. designations of the Chinese companies remained in place.
