China Imposes Export Controls on US Firms

China announced export controls on 10 American firms and restricted government procurement from 46 US firms on 22 June 2026. The measures were issued by the Chinese Ministry of Commerce and the finance ministry in response to the expansion of the United States Department of Defense list of Chinese military companies.

Export Control List

China added Aveox, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace & Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials, and USA Rare Earth to its export control list. The controls apply to dual-use items, which are goods, software, or technology with both civilian and military applications.

Dual-Use Trade Restrictions

Under the new rules, operators cannot ship dual-use items to the listed firms. Organisations and individuals outside China are also barred from transferring or providing dual-use items originating in China to these entities, and ongoing export activities must stop immediately.

Government Procurement Ban

China’s finance ministry barred government procurement agencies from buying products made by 46 US firms. The list includes Lockheed Martin, Raytheon Missiles & Defense, and Boeing’s defence division.

Important Facts for Exams

• Dual-use items are regulated in many countries because they can serve both civilian and military purposes.
• China’s Ministry of Commerce handles export control measures and trade-related restrictions.
• Rare earth elements are used in electronics, magnets, defence systems, and electric vehicles.
• MP Materials and USA Rare Earth are US companies linked to domestic rare earth supply chain development.

Background Context

The restrictions came after a period of reduced action against US firms following a summit between Donald Trump and Xi Jinping in October. China and the United States both maintain lists and controls related to national security, trade, and defence procurement.