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China Bars Dual‑Use Exports to 10 U.S. Firms and Bans Procurement from 46 Companies

Beijing says the moves respond to a recent Pentagon blacklist and signal it will use rare earths and procurement rules as leverage in the U.S.‑China security and trade rivalry.

Overview

  • China’s Commerce Ministry on Monday added 10 U.S. companies to its export control list and ordered exporters to stop sending Chinese‑origin dual‑use items to them, while the Finance Ministry barred government procurement from 46 U.S. firms.
  • The 10 firms named include rare‑earth producers MP Materials and USA Rare Earth and defence and aerospace suppliers such as Aveox, Oshkosh Defense and Ball Aerospace.
  • Beijing’s order extends beyond China by prohibiting ‘‘foreign institutions and individuals worldwide’’ from transferring Chinese‑origin dual‑use goods to the listed U.S. firms and requires suspension of any ongoing exports.
  • Analysts say the actions are a calibrated, partly symbolic retaliation because many targeted U.S. firms have little direct business in China, though the shift from licence reviews to outright bans marks a policy escalation.
  • The measures complicate U.S. plans to build independent rare‑earth supply chains and raise longer‑term strategic risk for defence and clean‑energy production, while diplomatic and G7 efforts to diversify critical‑minerals sources will shape next steps.