BEIJING — China’s government struck back Monday, announcing sanctions against 10 American defense companies after the United States recently blocked several prominent Chinese technology firms from receiving U.S. military contracts.
China’s Commerce Ministry announced that Chinese businesses would be prohibited from shipping so-called “dual-use” goods to the 10 American companies. Dual-use items are products that can serve both military and civilian purposes. The targeted American firms include military drone manufacturers and companies involved in rare earth mineral extraction.
The ministry stated the action was necessary to protect China’s national security and described it as a direct response to what it called the U.S. government’s “wrongful expansion of its so-called List of Chinese Military Companies.”
Chinese officials had previously stated that the American sanctions contradict an understanding reached between Chinese leader Xi Jinping and U.S. President Donald Trump when Trump visited China in May.
Earlier this month, the U.S. Defense Department added several major technology companies — including Alibaba and Baidu — to its list of businesses it claims have ties to the Chinese military. Baidu pushed back on the designation, calling the claim that it is a military company “totally baseless.”
Being placed on that list bars the companies from obtaining U.S. military contracts.
China’s Commerce Ministry noted that Chinese firms may still apply for special export approval when goods are “genuinely necessary.” The ministry also warned that businesses or individuals in other countries are forbidden from transferring dual-use Chinese goods to any of the sanctioned American companies.
The 10 American companies facing the Chinese export restrictions are: AVEOX, based in Simi Valley, California; Red Cat Holdings and Teal Drones, both located in South Salt Lake, Utah; IMSAR in Springville, Utah; Jaia Robotics in Bristol, Rhode Island; Ball Aerospace & Technologies in Broomfield, Colorado; Oshkosh Defense in Oshkosh, Wisconsin; L3Harris Maritime Services in Norfolk, Virginia; MP Materials in Las Vegas; and USA Rare Earth in Stillwater, Oklahoma.
