China Adds 10 US Firms to Export Control List

China Adds 10 US-Based Companies to Export Control List

The Ministry of Commerce announced an export control order on Monday, barring Chinese companies from exporting “dual-use” items to 10 United States-based companies. The list includes rare-earth mine operator MP Materials Corp, rare-earth magnet maker USA Rare Earths, and US defence contractors specializing in fields such as aerospace, drones, synthetic-aperture radar, and shipbuilding and repairs.

The order also prohibits foreign institutions and individuals worldwide from transferring or providing Chinese dual-use goods to the affected companies. Ongoing export transactions must be suspended immediately. The Ministry stated that the export ban aims to “safeguard national security and interests” and fulfill international obligations such as non-proliferation.

Separately, the Ministry of Finance barred Chinese government procurement from 46 companies, including subsidiaries of major US defence contractors like Lockheed Martin, Boeing, General Atomics, and General Dynamics. However, US-funded, locally registered companies have been given an exemption by the ministry.

The move follows a similar action taken by the Pentagon two weeks ago, which blacklisted some of China’s best-known companies for their alleged ties to the Chinese military. The list includes Chinese e-commerce giant Alibaba Holdings, search engine giant Baidu, and electric automaker BYD.

China-based supply chain consultant Cameron Johnson stated that Beijing’s orders mirror US semiconductor export controls designed to keep advanced chips out of Chinese hands. He noted that organizations or individuals in any country or region are bound by the regulations regardless of circumstance.

The export control order has been described as a retaliation, albeit largely symbolic, against the US after the Pentagon added about 80 Chinese companies and their subsidiaries to its list of “Entities Identified as Chinese Military Companies Operating in the United States”.

Source: Al Jazeera