China announced sanctions in response to the US barring some technology companies from defense contracts. The Ministry of Commerce stated that Chinese companies will be blocked from exporting "dual-use" products to 10 American firms, including military drone manufacturers and some companies involved in rare earth element mining.
The ministry said the export ban is to protect China's national security and to respond to the US government's "erroneous expansion of the so-called Chinese Military Companies List."
In a separate statement, the Ministry of Finance announced that state institutions will be prohibited from purchasing products from 46 American companies, including multiple units of Lockheed Martin, Raytheon, and General Dynamics.
This move came after the US Department of Defense added several technology companies, such as Alibaba and Baidu, to a list of firms it claims have ties to the Chinese military. This designation prevents those companies from receiving US military contracts.
The Ministry of Commerce stated that the American sanctions violate the understanding reached between Chinese leader Xi Jinping and US President Donald Trump during Trump's visit to China in May.
The ministry's announcement noted that companies or individuals in third countries are also banned from transferring dual-use products from China to the sanctioned American firms. It was also noted that Chinese companies can apply for export approval for "truly necessary" goods.
The 10 sanctioned companies include AVEOX from California, Red Cat Holdings and Teal Drones from Utah, Jaia Robotics from Rhode Island, Ball Aerospace & Technologies from Colorado, Oshkosh Defense from Wisconsin, L3Harris Maritime Services from Virginia, MP Materials from Nevada, and USA Rare Earth from Oklahoma.
