China has added several U.S. companies, including rare earth firms MP Materials and USA Rare Earth, to its export control list as tensions between Beijing and Washington continue to escalate over technology and national security restrictions.
China’s Commerce Ministry said the measures were taken in response to what it described as the “U.S. government’s malicious practice” of placing Chinese companies under restrictions. The ministry said the action was intended to protect national security interests and meet international obligations, including those related to non-proliferation.
The new restrictions prevent Chinese companies from transferring or supplying dual-use items to the listed U.S. entities. China said export activities involving those companies should stop immediately.
The move affects MP Materials, which operates the only active rare earth mine in the United States, and USA Rare Earth, both of which are involved in developing domestic mine-to-magnet supply chains. Aveox, a manufacturer of motors used in mission-critical applications, was also included on the list. The companies were not immediately available for comment outside business hours.
The latest action represents a tightening of China’s export controls. Previously, transactions involving some companies required export licences, but the new measures amount to a full ban on dual-use exports to the targeted firms.
The announcement came after Washington expanded restrictions on Chinese companies earlier this month. The U.S. Department of War’s 1260H list, which identifies companies believed to have links with China’s military, was updated to include major Chinese firms such as Alibaba, Baidu, BYD and NIO.
Analysts said China’s response was largely symbolic because many of the targeted U.S. companies have limited business activity in China. George Chen, partner for Greater China at geopolitical advisory firm The Asia Group, said most of the affected companies were either U.S. defense industry players or firms closely connected to the U.S. government.
“Most of the companies are U.S. defence industry players or they have close connections with the U.S. government,” Chen said, adding that the impact would likely be limited because those companies were not expected to conduct significant business in China.
Chen described Beijing’s move as a proportional response to the U.S. restrictions under the 1260H list.
In a separate announcement, China’s finance ministry said it would also impose measures against 46 U.S. companies. Chinese buyers will be prohibited from purchasing products manufactured by those companies, although U.S.-funded enterprises operating in China will still be permitted to do so.
The latest measures mark another escalation in the ongoing technology and trade dispute between the world’s two largest economies, with both governments increasingly using export controls and company restrictions as tools linked to national security concerns.
