Representative photo (archive photo)
NEW DELHI: China on Monday imposed export restrictions on 10 US companies involved in defense and rare earth mining, while also barring government procurement agencies from buying products made by dozens of US companies, escalating tensions between the world’s two largest economies.The measures were announced weeks after the United States expanded its blacklist of companies it says support the Chinese military, a move that prompted Beijing to warn of retaliatory measures.China’s Ministry of Commerce said the new export controls were intended to protect national interests and were a direct response to recent restrictions imposed by Washington.The Chinese Ministry of Commerce said in a statement that the new export controls imposed by China come “in response to the terrible action taken by the US government by adding the so-called list of Chinese military institutions,” adding that this step also aims to “protect national security.”The 10 companies targeted by the export restrictions include Avox, which holds air defense contracts with the US military, and Oshkosh Defense, a manufacturer of fleets of military vehicles. Chinese authorities did not immediately provide details about specific restrictions that might apply to the companies.In a parallel move, China’s Ministry of Finance announced that agencies involved in public procurement will no longer be allowed to purchase products manufactured by 46 American companies.
The list includes some of America’s largest defense contractors, such as Lockheed Martin, Raytheon, and Boeing’s defense division.The ministry said the restrictions will take effect immediately, starting Monday. However, it noted that companies with US investments operating in China will be exempt from the procurement ban.The latest measures represent a new deterioration in relations between Beijing and Washington, despite the efforts made by both sides to stabilize relations.
Just a month ago, US President Donald Trump traveled to Beijing for talks with Chinese President Xi Jinping, as the two leaders seek to ease tensions and improve economic cooperation.These efforts were complicated after Washington issued a new blacklist that includes 80 companies and branches that US authorities claim are linked to the Chinese military industrial sector.The US blacklist included several prominent Chinese companies, including technology giants Alibaba and Baidu, in addition to electric car manufacturer BYD.China has repeatedly criticized the blacklist, arguing that the United States is using national security concerns to suppress Chinese companies and restrict their access to global markets.Monday’s announcement suggests that Beijing is prepared to use trade and procurement measures in response, especially against companies linked to the US defense sector, as competition between the two countries increasingly extends beyond tariffs and technology into broader areas of economic and strategic competition.
