China Imposes Sanctions on 10 US Firms Over Pentagon Blacklist

China on Monday imposed export controls on 10 US companies involved in defence and rare earth mining, retaliating against Washington’s decision to blacklist a number of Chinese firms.

The move comes a month after US President Donald Trump visited Beijing in an effort to ease tensions during talks with Chinese President Xi Jinping. While both sides agreed to work toward lowering tariffs, relations have remained strained amid ongoing disputes over technology and defence.

Earlier this month, Washington added 80 companies and their subsidiaries to a blacklist, alleging they were supporting China’s military. The list included major Chinese firms such as Alibaba, Baidu and BYD, prompting Beijing to warn of retaliatory measures.

Announcing the latest restrictions, China’s commerce ministry said the export controls were a response to the US government's “egregious” decision to expand its so-called Chinese military enterprise list and were aimed at safeguarding national security.

The affected US companies include aerospace contractor Aveox and military vehicle manufacturer Oshkosh Defense, as well as rare earth producers MP Materials and USA Rare Earth.

Under the new rules, Chinese exporters are barred from supplying dual-use goods to the listed companies, and any ongoing exports must cease immediately. The restrictions also extend to organisations or individuals in any country or region that transfer or provide China-origin dual-use items to the sanctioned entities.

Separately, China’s finance ministry announced that government procurement agencies would be prohibited from purchasing products from 46 US companies, including Lockheed Martin, Raytheon and the defence division of Boeing. Other firms on the list include units of General Dynamics and Anduril Industries.

The procurement ban, which took effect on Monday, excludes companies with US investment operating in China, according to the finance ministry.

Many of the targeted firms had already been sanctioned by Beijing in 2024 and 2025 over US arms sales to Taiwan. China considers Taiwan part of its territory and has not ruled out using force to bring the island under its control, while Taipei continues to rely heavily on US support amid growing pressure from Beijing.

US Secretary of State Marco Rubio said earlier this month that a proposed $14 billion arms package for Taiwan was still under review.

Despite the latest tensions, Trump has continued to portray US-China relations positively since his meeting with Xi in May. At last week's G7 summit in France, he thanked the Chinese leader for remaining “neutral” during the US conflict with Iran as both sides moved toward an initial ceasefire.