China imposes export controls on 10 US defense firms
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- China's commerce ministry imposed export controls on 10 US companies in defense and rare earths mining, effective Monday, calling it a response to Washington's 'egregious act' of expanding its so-called Chinese military enterprise list.
- China's finance ministry simultaneously banned public procurement from 46 US firms including Lockheed Martin, Raytheon, and Boeing's defense division, with companies holding US investments in China exempted.
- Aveox and Oshkosh Defense are among the 10 sanctioned firms — Aveox holds aerospace defense contracts with the US military, while Oshkosh produces military vehicle fleets.
- The retaliation comes roughly a month after Trump visited Beijing seeking to stabilize relations with Chinese counterpart Xi Jinping, talks that have done little to stop the tit-for-tat.
- Washington's latest blacklist covers 80 companies and their subsidiaries, including tech giants Alibaba and Baidu and electric vehicle maker BYD — the civilian-tech additions that triggered Beijing's retaliation threat.
Why it matters: Beijing's carve-out for companies with US investments in China softens the procurement ban's bite, while its targeting of rare earths mining — a supply chain China dominates — gives it leverage. The 10-firm export controls and 46-firm procurement ban, effective Monday, show the US-China economic tit-for-tat is not cooling a month after Trump's stabilization summit with Xi Jinping.
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