China bans dual-use exports to 10 US defence companies amid rising trade tensions

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Beijing, June 22

China has announced new restrictions on several American companies, including a ban on exports of dual-use items to 10 US defence-related firms and a prohibition on government purchases from 46 US companies, in retaliation against recent sanctions imposed by Washington.

The Chinese government said the measures were aimed at protecting national security and responding to what it described as the United States’ “wrongful expansion” of its military company list.

The restrictions come after the US government placed Chinese technology companies, including Alibaba and Baidu, under restrictions related to defence contracts over allegations of links with China’s military sector.

Among the US companies affected by Beijing’s latest move are firms involved in defence technology, drone manufacturing, robotics and rare earth materials. Major defence contractors such as Lockheed Martin and Raytheon are among the companies facing restrictions.

China has also warned third countries against transferring restricted items to the listed American firms. However, Beijing said exemptions could be considered for goods deemed necessary or essential.

The latest measures add to growing tensions between the world’s two largest economies, with both countries increasingly using trade and technology restrictions as part of their broader strategic competition.

The restrictions are expected to impact business operations involving defence supplies, advanced technologies and critical materials, while further intensifying concerns over global supply chain stability.