Beijing (Diplomat.so) – China Ministry of Commerce announced on Monday, June 22, 2026, new export controls targeting ten US defence and rare earth-linked companies in response to Washington's blacklisting of Chinese firms. The measures also restrict procurement and dual-use transfers, officials said.
The Ministry of Commerce said, "the reprehensible action of adding so-called military companies list,” describing the measure as a response to US restrictions. It added, "this step is intended to protect national security and legitimate rights,” in an official statement released in Beijing. The announcement forms part of escalating tit-for-tat trade measures between Washington and Beijing in recent weeks across technology and defence sectors.
The Ministry of Finance separately barred Chinese public procurement institutions from purchasing products made by 46 US companies, including Lockheed Martin, Raytheon, and Boeing’s defence division. The export controls also target ten US entities such as Avioxx and Oshkosh Defense, firms involved in aerospace and military vehicle contracts with the US military. The measures entered into force with immediate effect, according to a ministry notice released on Monday in Beijing.
Officials said Chinese exporters may apply for licences to ship goods deemed "strictly necessary” to sanctioned US firms. Authorities also banned companies and individuals in third countries from re-exporting dual-use items originating in China to affected entities, tightening enforcement across supply chains according to the ministry framework. The framework outlines stricter oversight of sensitive material flows and compliance requirements domestically.
The measures follow US moves to place 80 Chinese companies on restricted lists, citing alleged military links, including major firms such as Alibaba, Baidu, and BYD. Beijing warned of retaliation after the announcements, amid already strained trade relations between the two countries over technology and defence supply chains. tensions remain elevated across policy channels globally.
Analysts say the escalation could deepen fragmentation in global defence supply chains and heighten sensitivity around rare earth materials critical to aerospace and military manufacturing. China remains a dominant supplier of several strategic minerals, giving it leverage in trade disputes, while US restrictions aim to curb Chinese technological advancement including in semiconductors and aerospace components according to market observers reports.
Speaking to Diplomat News Network, trade observers noted that the reciprocal measures reflect "a structured escalation cycle” between Washington and Beijing, with both sides tightening export controls and investment screening. Market participants are monitoring potential knock-on effects on aerospace procurement and cross-border technology flows in the coming months globally.
The latest measures take effect immediately, marking another step in the widening trade and technology dispute between the world’s two largest economies, with regulatory pressure expected to persist across defence and critical materials sectors over the medium term ahead globally.
