China sanctions US tech giants weeks after Pentagon blacklisted Chinese firms

China on Monday announced sanctions on 10 American military-related companies in response to a recent US move that bars some leading Chinese tech companies from defence contracts.

The Commerce Ministry said that Chinese companies would be blocked from exporting “dual-use” items to the 10 companies, which include military drone makers and some involved in rare earth mining. Dual use refers to goods that can have military as well as non-military applications.

The ministry said the export ban was both to safeguard China's national security and in response to what it called the US government's “wrongful expansion of its so-called List of Chinese Military Companies".

Separately, the finance ministry said that government entities would be prohibited from buying products from 46 American companies including multiple units of Lockheed Martin, Raytheon and General Dynamics. A brief statement did not give any reason for the prohibition.

Earlier this month, the Pentagon added several tech companies including Alibaba and Baidu to its list of firms that it says have links to the Chinese military. Baidu said the suggestion that it is a military company is “totally baseless".

The designation prevents them from getting US military contracts.

The Commerce Ministry said at the time that the American sanctions run counter to the consensus that Chinese leader Xi Jinping and US President Donald Trump reached during Trump's visit to China in May.

In Monday's announcement, the ministry said that companies or individuals in third countries are prohibited from transferring dual-use items from China to the sanctioned American firms. It also said that Chinese companies could apply for export approval for goods that are “genuinely necessary".

The 10 companies are AVEOX in Simi Valley, California; Red Cat Holdings and Teal Drones, both in South Salt Lake, Utah; IMSAR in Springville, Utah; Jaia Robotics in Bristol, Rhode Island; Ball Aerospace & Technologies in Broomfield, Colorado; Oshkosh Defense in Oshkosh, Wisconsin; L3Harris Maritime Services in Norfolk, Virginia; MP Materials in Las Vegas; and USA Rare Earth in Stillwater, Oklahoma.

Taiwan arms sales 'under review'

China's commerce ministry had already sanctioned a number of those firms and their subsidiaries, both in 2024 and 2025 over US arms sales to Taiwan.

Taipei relies heavily on Washington's support to counter growing pressure from Beijing, which claims Taiwan as part of its territory and has not ruled out seizing it by force.

US Secretary of State Marco Rubio said this month a proposed US$14 billion arms package to Taiwan was "under review".

Since his meeting with Xi in May, Trump has sought to publicly present an image of strong bilateral ties.

Trump thanked the Chinese leader at the G7 conference in France last week for staying "neutral" in the US conflict with Iran, as the countries adopted an initial ceasefire.

(FRANCE 24 with AFP and AP)