China on Monday imposed restrictions on 10 US entities in a tit-for-tat response to the Pentagon’s move last month, state media reported. The Commerce Ministry said it had decided to add 10 US entities, including Aveox, Inc., to its export control list to safeguard China's national security and in accordance with the country's export control law and regulations governing dual-use items, Xinhua news agency reported. The measure was taken to fulfill international obligations such as non-proliferation, the ministry said in a statement.
Background of the Dispute
Beijing's move came after the Pentagon earlier this month updated its so-called 1260H list by adding several Chinese technology companies, including Alibaba Group, Baidu, and carmaker BYD, to a list of entities it believes to have aided the Chinese military. According to Xinhua, the Chinese Commerce Ministry stated that the restrictions are necessary to protect national security and comply with international non-proliferation commitments.
Entities Affected by Export Controls
Chinese export operators are now prohibited from exporting dual-use items to the 10 entities, which also include Red Cat Holdings, Inc., Teal Drones, Inc., IMSAR, Jaia Robotics, Inc., Ball Aerospace & Technologies Corp., Oshkosh Defense, L3Harris Maritime Services, Inc., MP Materials Corp., and USA Rare Earth, Inc. Organizations and individuals from any country or region are prohibited from transferring or providing dual-use items originating in China to the above-mentioned entities.
Additional Government Procurement Ban
In a related move, China's Finance Ministry on Monday issued a notice barring government agencies from purchasing products made by 46 designated US companies through government procurement programs. Under the new measure, government agencies are barred from buying products made by the listed US firms, including Lockheed Martin Corporation and Raytheon Missiles & Defense. This expands the scope of retaliation beyond export controls to include economic measures targeting US defense contractors.
