China imposed new trade restrictions on dozens of US companies on Monday in response to Washington adding more Chinese firms to a Pentagon blacklist of companies accused of supporting China’s military.
The Chinese Ministry of Commerce added 10 American industrial suppliers to its export control list, including rare earth companies MP Materials Corp and USA Rare Earth, as well as drone manufacturers Teal Drones and Jaia Robotics. These firms are now banned from receiving exports of dual-use items from China.
Other companies affected include California-based Aveox Inc, Ball Aerospace & Technologies Corp, and Oshkosh Defense.
China imposes trade curbs on dozens of U.S. firms in retaliation for Pentagon blacklist https://t.co/TtioRgT49D
— CNBC (@CNBC) June 22, 2026
In a separate move, China’s Finance Ministry barred 46 US companies, mostly defense contractors, from taking part in government procurement projects. However, foreign-funded companies in China linked to these firms are not included in the ban.
These steps came after the US Pentagon updated its 1260H list, adding several Chinese companies it believes are linked to military support, including Alibaba Group, Baidu, and BYD.
Analysts say China’s response is largely symbolic because many of the affected US companies have limited business in China. The 1260H list itself does not impose immediate sanctions but restricts US defense contracts starting June 30 and expands further limits by 2027.
China said it would protect its companies’ rights and criticized the US for using “national security” as justification for discriminatory lists.
Experts also noted that the move reflects a controlled response by China, aimed at managing tensions after a recent leadership summit improved relations.
Some Chinese firms have challenged their designation in court, with Xiaomi previously succeeding in having its listing removed in 2021.
Several designated Chinese firms have disputed the designations while pledging legal action to seek their removal. Chinese smartphone maker Xiaomi won a court challenge that resulted in its designation being removed in May 2021.
