China on Monday announced sanctions against 10 American military-related companies, escalating tensions with the United States following Washington’s decision to restrict several leading Chinese technology firms from participating in defence contracts.

The measures include export restrictions on dual-use goods for the targeted companies and a wider procurement ban affecting dozens of US firms. Beijing said the move was aimed at protecting national security and responding to what it described as the United States’ “wrongful expansion of its so-called List of Chinese Military Companies”.

Export Curbs Target Military-Related Companies

China’s Commerce Ministry said domestic companies would be prohibited from exporting “dual-use” items to the 10 sanctioned American firms.

The ministry described dual-use products as goods that can serve both civilian and military purposes.

It added that entities and individuals in third countries would also be barred from transferring such products originating from China to the affected US companies.

However, Chinese firms would be permitted to seek government approval for exports deemed “genuinely necessary”.

According to the ministry, the measures were introduced to safeguard China’s national security interests.

Procurement Ban Covers 46 US Companies

Separately, China’s Finance Ministry announced that government bodies would no longer be allowed to purchase products from 46 American companies, state-run Xinhua News Agency reported.

The list includes major defence contractors such as Lockheed Martin and Raytheon Missiles & Defence.

The latest measures represent a broader response by Beijing, combining export controls on selected defence-linked firms with restrictions on government procurement involving dozens of US companies.

Move Follows US Restrictions on Chinese Firms

Earlier this month, the US Department of Defense added several Chinese technology companies, including Alibaba and Baidu, to a list of entities it claims have links to the Chinese military.

Baidu rejected the allegation, describing the suggestion that it is a military company as “totally baseless”.

Inclusion on the list prevents the affected companies from securing contracts with the US military.

Following the announcement, China’s Commerce Ministry said the American measures ran counter to the understanding reached between Chinese President Xi Jinping and US President Donald Trump during Trump’s visit to China in May.

List of Companies Named by Beijing

The 10 companies targeted by China’s sanctions are AVEOX of Simi Valley, California; Red Cat Holdings and Teal Drones, both based 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.

The latest exchange of measures marks another escalation in the economic and strategic rivalry between the world’s two largest economies.

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