China has retaliated against the U.S. by announcing export controls targeting 10 American companies and banning government agencies from purchasing products from 46 defense firms, following the Trump administration's blacklisting of several major companies, citing their links to the Chinese military.
On 22 June 2026, China's Ministry of Commerce announced that the government has imposed export control measures on 10 U.S. companies related to the defense industry and rare earth mining, in response to Washington adding Chinese companies to its blacklist for alleged ties to the Chinese military.
The statement said this action aims to protect China's national security and responds to what Beijing calls the U.S. government's serious misconduct. The sanctioned companies include Aveox, a U.S. military aviation contractor; Oshkosh Defense, a military vehicle manufacturer; and MP Materials and USA Rare Earth, major U.S. rare earth producers.
Under the new measures, exporters are prohibited from selling products with both civilian and military uses to these companies, with ongoing transactions required to cease immediately. Additionally, China has extended the ban to any organizations or individuals in any country who transfer Chinese-origin goods to these blacklisted companies.
At the same time, China's Ministry of Finance announced a ban on government agencies purchasing products from 46 U.S. defense companies, including major global arms manufacturers such as Lockheed Martin, Raytheon, Boeing Defense, General Dynamics, and Anduril Industries.
This move comes just one month after President Donald Trump visited Beijing to meet President Xi Jinping, where both sides agreed to reduce import tariff tensions and revive economic relations. Analysts see this retaliation as evidence that the competition between China and the U.S. has expanded from a trade war into technology, defense industries, and control over strategic resources like rare earth minerals, which are crucial for producing chips, weapons, and electric vehicles in the future.