China has imposed export restrictions on 10 American defense and rare earth metals companies in retaliation for the US decision to blacklist Chinese firms.
The Ministry of Commerce stated that this step is a response to the US government's addition to the 'so-called Chinese military companies list' and aims to protect national security.
Among the American companies affected by the restrictions are 'Aviocx', which has contracts with the US military in the aviation and space sector, and military vehicle manufacturer 'Oshkosh Defense'.
It was noted that Chinese companies can apply for permits to export 'truly necessary' goods to the banned American firms.
Simultaneously, the Ministry of Finance banned state agencies from purchasing products from 46 American companies, including the defense divisions of Lockheed Martin, Raytheon, and Boeing.
These bans were reported to have taken effect from Monday.
China's move came one month after the US blacklisted 80 Chinese companies, including Alibaba, Baidu, and electric vehicle maker BYD, over alleged military links.
The Chinese Ministry of Commerce had previously stated that these US sanctions contradict the consensus reached by the two leaders during US President Donald Trump's visit to Beijing in May.