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China Sanctions 10 US Defense Firms in Trade Clash

Beijing said the move responds to U.S. military-linked blacklists and targets defense, drone and rare-earth supply chains, with export controls taking effect immediately.

  • On Monday, June 22, 2026, China's Ministry of Commerce added 10 U.S. firms to its export control list, while the Ministry of Finance simultaneously banned 46 American companies from government procurement contracts.
  • Beijing stated these actions respond to the Pentagon's expansion of its 'so-called List of Chinese Military Companies,' which added major tech firms including Alibaba Group, Baidu, and BYD earlier this month.
  • Export controls prohibit transferring dual-use items to firms like MP Materials and USA Rare Earth, while the procurement ban targets defense contractors including Lockheed Martin, Raytheon, and General Dynamics.
  • The Finance Ministry granted exemptions for U.S.-funded enterprises operating within China, with analysts describing the restrictions as largely symbolic given the targeted firms' minimal business exposure there.
  • These retaliatory measures signal a new front in the U.S.-China trade war, testing the relationship despite efforts to stabilize ties during the May 14, 2026, summit between President Donald Trump and President Xi Jinping.
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Lean Left

After the US designated several Chinese companies as ‘military’, China is now paying the Americans back in kind. Specifically, with restrictions on the export of rare earth metals for a number of American companies. It shows: Chinese dominance in that area is not easily broken.

·Netherlands (Kingdom of the)
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hna.dehna.de
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mannheim24.demannheim24.de
Center

Beijing is putting new export controls into effect against ten US companies. Two key companies for Washington's rare earth strategy are also affected. An analysis.

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La Presse broke the news in Montreal, Canada on Sunday, June 21, 2026.
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