China Bars Exports to 10 U.S. Firms, Excludes 46 From Government Contracts

China placed 10 U.S. industrial suppliers on an export control list Monday and excluded 46 American companies from government procurement projects. The export restrictions cover rare earth miners MP Materials Corp and USA Rare Earth, drone makers Teal Drones and Jaia Robotics, plus electronics manufacturer Aveox Inc, Ball Aerospace & Technologies Corp, and military equipment provider Oshkosh Defense.

The measures bar any dual-use items originating in China from reaching the listed firms.

A separate announcement Monday excluded 46 U.S. companies, mostly defense contractors, from bidding on Chinese government procurement projects. Any foreign-funded entities registered locally and tied to the excluded firms are also barred. The moves respond to the Pentagon's earlier update to its 1260H list, which added Chinese technology companies including Alibaba Group, Baidu, and carmaker BYD.

The actions appear largely symbolic, said Han Shen Lin, China country director at consultancy The Asia Group, because most targeted companies have little or no meaningful business exposure in China. The 1260H designation bars the U.S. Department of Defense from awarding direct contracts to listed firms starting June 30, with indirect procurement limits following in 2027.

Chinese authorities earlier this month said they would take all necessary measures to protect Chinese companies' legitimate and legal rights and benefits. The latest steps provide a model example of how China will likely handle mild escalation while keeping the broader relationship stable, said Dan Wang, China director at Eurasia Group, citing last month's Trump-Xi summit.

Several designated Chinese firms have disputed the Pentagon listings and pledged legal action. Chinese smartphone maker Xiaomi won a court challenge that removed its designation in May 2021.