China adds 10 US firms, including rare-earth miner, to export control list

What Happened

China’s Ministry of Commerce added 10 US-based companies to its export control list on Monday, barring Chinese firms from exporting dual-use items to them and requiring immediate suspension of ongoing transactions. The list includes rare-earth mine operator MP Materials Corp, rare-earth magnet maker USA Rare Earths, and US defence contractors specialising in aerospace, drones, synthetic-aperture radar, and shipbuilding. Separately, China’s Ministry of Finance barred Chinese government procurement from 46 companies, including subsidiaries of Lockheed Martin, Boeing, General Atomics, and General Dynamics. The moves are a direct retaliation against the Pentagon’s early June addition of approximately 80 Chinese companies—including Alibaba, Baidu, and BYD—to its list of ‘Entities Identified as Chinese Military Companies Operating in the United States,’ a designation that affects defence supply chains. Experts describe Beijing’s orders as largely symbolic and difficult to enforce, but they mirror US semiconductor export controls in their extraterritorial reach and signal escalating tit-for-tat in the US-China trade war.

Key Actors

Why It Matters

The escalation deepens the US-China technology and trade conflict, particularly in strategic sectors like rare earths and defence. It mirrors US semiconductor export controls and demonstrates that national security concerns are overriding diplomatic truces, with both sides weaponising trade restrictions. Although enforcement of Beijing’s orders is questioned, they could disrupt supply chains for critical minerals and signal that the trade war is expanding into new fronts.

Watch For

Monitor enforcement of China’s export ban, especially against firms with supply chains in China. Watch for US responses, such as additional Pentagon listings or new export controls on rare earths. Track any impact on the operations of targeted US defence contractors and rare-earth supply chains. Note further actions from either side following the Trump-Xi summit, as experts expect continued tit-for-tat despite diplomatic niceties.