China bans procurement from 46 US firms, adds 10 to export

In a significant escalation of bilateral tensions, China imposed new trade and procurement restrictions on dozens of U.S. companies on Monday, June 22, 2026. The move is a direct response to recent U.S. sanctions targeting Chinese technology firms.

China’s Ministry of Commerce announced export controls on 10 American firms, prohibiting Chinese companies from exporting “dual-use” items-goods with potential civilian and military applications-to them. The ministry stated the measures aim to safeguard national security and counter what it called the U.S. government’s “wrongful expansion” of its list of sanctioned Chinese military companies. The targeted U.S. entities include drone manufacturers, defense contractors, and rare earth mining companies, specifically AVEOX, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials, and USA Rare Earth. The restrictions also ban entities in third countries from transferring China-origin dual-use goods to these firms, though Chinese exporters can apply for special approval for goods deemed “genuinely necessary.”

Simultaneously, China’s Ministry of Finance...