June 22 announcement, China Ministry of Commerce state new export controls launched "to counter serious US government action" adding firms to "Chinese military companies list". Move also aim "protect national security".
MP Materials rare earth mine operating at Mountain Pass, California (US). Photo: Reuters
Group of 10 controlled US firms include Aveox - aerospace defense contractor for US military, and Oshkosh Defense - military vehicle maker. Also include 2 rare earth miners: MP Materials, USA Rare Earth.
Decision follow one month after US President Donald Trump visit Beijing to stabilize ties. However, two weeks ago, Washington release new blacklist of 80 firms and affiliates allegedly aiding Chinese military, including tech giants Alibaba, Baidu, and EV makers BYD, NIO. This prompt Beijing retaliation threat.
China Ministry of Finance also ban state agencies from buying products made by 46 US firms. These include Lockheed Martin, Raytheon, Boeing defense unit. However, US-invested firms operating in China exempt from ban. Measures effective June 22.