China sanctions dozens of US companies in response to Pentagon blacklisting Chinese firms
Nearly 60 US tech and defense firms were hit with sanctions announced by Beijing’s ministries of commerce and finance
China imposed new restrictions on dozens of US entities on 22 June in response to Washington’s blacklisting of several more Chinese companies accused of aiding Beijing’s military forces.
“China has decided to place 10 US entities, including [engineering firm] Aveox Inc., on its export control list,” the Chinese Ministry of Commerce said.
Among the other companies included are the California-based Ball Aerospace & Technologies Corp., as well as military equipment provider Oshkosh Defense.
“Export operators are prohibited from exporting dual-use items to the above-mentioned 10 entities. Any organization or individual in any country or region is also prohibited from transferring or providing dual-use items originating from China to these entities. Any ongoing related export activities must be stopped immediately,” the Commerce Ministry stated.
It added that exporters must appeal to the ministry “If exports are genuinely necessary under special circumstances.”
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The ministry said the decision would take effect immediately. Two of the companies under Chinese sanctions are US rare-earth minerals companies. Drone manufacturers Teal Drones and Jaia Robotics are also included.
China’s Finance Ministry announced sanctions on 46 other US firms, mainly defense contractors, in a separate statement on Monday.
“In accordance with relevant laws and regulations, and upon approval, it has been decided to take relevant measures against 46 US companies in government procurement activities,” it said.
Earlier this month, the US Department of War expanded its blacklist of Chinese military firms.
Sixty-five new entities were added to the list by the Pentagon in mid-June, including Chinese tech firms Alibaba and Baidu.
The escalation in trade tensions between the Beijing and Washington comes just weeks after US President Donald Trump visited China and met with the country’s President Xi Jinping.
Xi said at the time that the two presidents discussed a “new vision” for China–US relations, which Trump described as “very special.”
Prior to Trump’s visit, Washington had imposed sanctions on Chinese firms accused of involvement in the Iranian oil trade.
In November last year, Beijing suspended a series of restrictions on the export of rare earth minerals to the US.
The suspension followed a brief trade war involving high tariffs imposed by both sides. The pause of the restrictions on rare earth mineral exports is effective until November 2026.