China adds 10 US firms to export control list, restricts 46 from government procurement

**China has added 10 US firms to its export control list and restricted 46 others from government procurement**, retaliating against Washington’s recent expansion of a military blacklist targeting Chinese companies. The Ministry of Commerce cited “malicious actions” by the US and invoked laws on dual-use items to justify the bans, which include rare earth firms MP Materials and USA Rare Earth, as well as defense contractors like Ball Aerospace and Oshkosh Defence. Analysts say the measures are calibrated to avoid derailing broader bilateral ties but serve as a warning against further US sanctions.</p><p class="summary-lead">**The export controls prohibit shipping dual-use items—products with civilian and military applications—to the 10 listed US firms**, and any ongoing shipments must stop immediately. Separately, the Ministry of Finance barred 46 US companies, including Lockheed Martin, Raytheon, and Boeing Defense, from government procurement, though joint ventures in China are exempt. These actions follow the Pentagon’s June 9 addition of dozens of Chinese firms—including Alibaba, BYD, and Nio—to its “Chinese military companies” list, which complicates their access to US capital markets.</p><p class="summary-lead">**Observers view Beijing’s move as a “brushback pitch” to signal resolve ahead of President Xi Jinping’s planned September visit to the US**, with both sides likely to use trade measures as bargaining chips. Cameron Johnson of Tidalwave Solutions warned that more sanctions are probable, as each side seeks leverage before the summit. Fudan University’s Xin Qiang noted that while Beijing is “not afraid of tactical confrontation,” further escalation could cast a pall over the meeting and trigger a vicious cycle of retaliation.</p><p class="summary-lead">**The core implication is that US-China trade tensions are intensifying even as diplomatic channels remain open**, with both governments expanding blacklists and export controls in key technology sectors. China’s focus on rare earths and dual-use items targets US supply chains, while the Pentagon’s list hits Chinese AI, EV, and biotech firms. The outcome hinges on whether Washington introduces new sanctions before September, which would likely provoke a sharper Chinese response and undermine the summit’s potential for de-escalation.