Akshay DidwaniyaChina has imposed strict export controls on ten US companies spanning aerospace defence and rare earth mining in a sharp retaliatory move after Washington added major Chinese firms to its so-called military enterprise blacklist. The escalation signals fresh cracks in fragile Sino-American ties, just weeks after Trump and Xi met face-to-face in Beijing.
China Strikes Back at Washington With Export Bans on US Defence Giants
Beijing has moved decisively against ten American companies slapping them with sweeping export controls covering aerospace defence contractors and rare earth mining firms. China’s commerce ministry confirmed the action Monday, framing it as a direct counter to Washington’s latest military blacklist targeting dozens of Chinese enterprises.
The timing is striking. It comes barely a month after US President Donald Trump flew to Beijing hoping to steady a relationship long strained by tech rivalry and trade friction. Trump sat down with Chinese President Xi Jinping in a high-profile summit aimed at calming tensions.
Tariff Truce Unravels Fast
Both countries agreed to work toward lowering tariffs during those meetings. But the goodwill did not last long. Washington and Beijing continued undermining each other in technology and defence sectors and the fragile peace began crumbling.
This month, the United States released a fresh blacklist naming 80 companies and their subsidiaries all allegedly supporting China’s military apparatus. Tech titans Alibaba and Baidu landed on that list. So did electric vehicle powerhouse BYD. Beijing threatened retaliation and has now followed through.
“Egregious Act” Beijing Fires Back
China’s commerce ministry was blunt in its language. The export controls came “in response to the US government’s egregious act of adding to its so-called ‘Chinese military enterprise list’,” the ministry said in an official statement. The ministry also cited national security as a driving factor behind the decision.
The ten targeted American entities include Aveox an aerospace defence firm with active US military contracts and Oshkosh Defense, a manufacturer of large military vehicle fleets. Also making the list are rare earth producers MP Materials and USA Rare Earth both critical players in the global supply of strategic minerals.
Full Embargo on Dual-Use Goods
Exporters are now barred from supplying dual-use items to any of the ten blacklisted entities. China’s commerce ministry left no room for ambiguity “any relevant export activities currently underway must cease immediately,” it stated. The ban extends beyond American soil. It covers “organisations or individuals in any country or region… transferring or providing dual-use items originating in China to said entities.”
In a simultaneous move, China’s finance ministry announced a procurement ban. Agencies involved in public procurement across China cannot purchase products made by 46 US firms a sweeping list that includes Lockheed Martin, Raytheon, and Boeing’s defence division. Major military contractors General Dynamics and Anduril Industries also appear on the list alongside several aerospace companies.
Chinese-American Joint Ventures Get a Pass
One notable carve-out exists companies with US investments operating inside China remain exempt from the procurement ban, according to the finance ministry. The measures took effect from Monday.
It is worth noting that China’s Commerce ministry had already sanctioned several of these firms previously both in 2024 and in 2025 over American arms sales to Taiwan. The latest round deepens that established pattern of tit-for-tat measures.
Taiwan Remains the Flashpoint
The Taiwan issue continues to simmer beneath every Sino-American confrontation. Taipei relies heavily on Washington’s military and diplomatic backing vital support needed to resist mounting pressure from Beijing. China considers Taiwan part of its sovereign territory and has repeatedly refused to rule out taking it by force.
US Secretary of State Marco Rubio confirmed this month that a proposed $14 billion arms package for Taiwan remains “under review” a statement guaranteed to keep Beijing on edge.
Trump Plays Both Sides
Since his May meeting with Xi, Trump has tried hard to project an image of warm bilateral ties. At the G7 summit in France last week, Trump publicly thanked Xi for keeping China “neutral” during Washington’s military confrontation with Iran as both sides moved toward an initial ceasefire. But Beijing’s latest salvo makes clear words and weapons do not always travel in the same direction.
Aditya Didwaniya
Mayur Mohta
Pratik Agrawal