In a new retaliatory move against US sanctions, China has imposed export restrictions on 10 American companies, including the United States' largest producers of rare earths. Beijing's decision, as noted by Reuters, further intensifies the confrontation between the world's two largest economies regarding technology, defense, and critical raw materials.
10 US companies on the "blacklist"
The Chinese Ministry of Commerce announced the inclusion of 10 US entities in its export control list, claiming they are linked to the US military. Under the new measures, Chinese enterprises and individuals are prohibited from supplying these specific companies with dual-use products and technologies—goods that can be utilized for both commercial and military purposes. The restrictions take immediate effect and are considered stricter than previous regulations, which allowed exports under special permits.
Rare earths in the spotlight
Among the companies affected are MP Materials and USA Rare Earth, two key pillars of the American strategy to reduce dependence on China for critical raw materials. MP Materials operates the only active rare earth mine in the United States and has received significant support from the US Pentagon. Both companies participate in investments to develop domestic production of rare earths and permanent magnets, materials deemed critical for the defense industry, electric vehicles, and advanced technologies. The list also includes the electric motor manufacturer Aveox, which operates in applications of high strategic importance.
New restrictions on public procurement
Separately, the Chinese Ministry of Finance announced a package of measures affecting 46 US companies. Under the new rules, Chinese entities will be unable to procure products manufactured by these specific enterprises. An exemption is provided for US-affiliated companies operating within China, which will continue to have access to these specific products.
Beijing cites national security reasons
The Chinese Ministry of Commerce stated that the measures are a response to what it termed "malicious practices" by the US government. It argued that the restrictions aim to protect the country's national security and interests, while also aligning with China's international obligations regarding the non-proliferation of sensitive technologies.
A response to US sanctions
The Chinese move comes a few weeks after Washington's decision to place several large Chinese companies on a list of enterprises that, according to US authorities, support Beijing's military capabilities. These include Alibaba, Baidu, BYD, and NIO. The US decision had provoked strong reactions from Beijing and is considered the direct catalyst for these new Chinese countermeasures.
Why rare earths are a strategic weapon
Rare earths are an essential component for a range of cutting-edge technologies, such as electric vehicles, wind turbines, smartphones, defense systems, high-end electronics, and powerful permanent magnets. China still dominates global rare earth processing and refining, a fact that grants it significant geoeconomic influence and makes access to them a critical issue for Western economies.
Increasing pressure on supply chains
The new restrictions are expected to further increase pressure on the already fragile US-China trade relations. The affected companies will likely accelerate efforts to diversify their suppliers and develop domestic production chains, particularly in strategic sectors like rare earths, defense, and advanced industrial production. This latest development confirms that the competition between Washington and Beijing is shifting increasingly from tariffs and trade to the control of critical raw materials and the technologies of the future.
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