China imposes sanctions on 10 U.S. firms in response to Pentagon blacklist

China announced export controls targeting ten U.S. companies involved in defense and rare‑earth mining in response to Washington’s recent blacklist of Chinese firms.

The action follows a month after U.S. President Donald Trump visited Beijing, where he and Chinese President Xi Jinping discussed easing tensions. Although the two leaders agreed to reduce tariffs, relations have since been strained by mutual accusations over technology and defense cooperation.

Earlier this month, the United States released a new blacklist that listed 80 companies and subsidiaries alleged to support the Chinese military. The list added tech giants Alibaba and Baidu, as well as electric‑vehicle maker BYD, prompting Beijing to threaten retaliation.

China’s commerce ministry said the export controls were “in response to the U.S. government’s egregious act of adding to its so‑called ‘Chinese military enterprise list’” and that the measures were also intended to “safeguard national security.”

The 10 U.S. entities include Aveox, which holds aerospace defense contracts with the U.S. military, and Oshkosh Defense, which manufactures military vehicle fleets. U.S. rare‑earth producers MP Materials and USA Rare Earth are also listed.

Exporters are prohibited from supplying dual‑use items to the listed entities, and any ongoing export activities must cease immediately, the ministry added. The ban also applies to organizations or individuals in any country who transfer or provide dual‑use items originating in China to those entities.

At the same time, China’s finance ministry announced a ban on public‑procurement agencies from buying products made by 46 U.S. firms, including Lockheed Martin, Raytheon, and Boeing’s defense division. The list also includes divisions of General Dynamics and Anduril Industries, as well as several aerospace companies.

Companies with U.S. investments operating in China are excluded, the finance ministry said, and the measures will take effect from Monday.

China’s commerce ministry had previously sanctioned several of these firms and their subsidiaries in 2024 and 2025 over U.S. arms sales to Taiwan. Taipei relies heavily on Washington’s support to counter growing pressure from Beijing, which claims Taiwan as part of its territory and has not ruled out seizing it by force.

U.S. Secretary of State Marco Rubio said this month that a proposed U.S.$14 billion arms package for Taiwan was “under review.”

Since his meeting with Xi in May, Trump has sought to portray a strong image of bilateral ties. He thanked the Chinese leader at the G7 conference in France last week for staying “neutral” in the United States’ conflict with Iran, as the two countries adopted an initial ceasefire.

AFP

The post China retaliates, sanctions 10 U.S. firms over Pentagon blacklist appeared first on Vanguard News.