China bars exports of dual-use items to 10 U.S. companies

China's commerce ministry on Monday barred Chinese firms from exporting dual-use items to 10 U.S. companies. The affected firms include drone manufacturers and companies involved in rare earth mining. The ministry stated the restrictions protect national security and respond to U.S. measures that added Chinese companies to a military-linked list.

It also prohibited companies or individuals in third countries from transferring such items from China to the sanctioned U.S. firms.

Finance ministry action China's finance ministry separately prohibited government entities from purchasing products from 46 U.S. companies. The list includes multiple units of Lockheed Martin, Raytheon, and General Dynamics. No reason was provided for the purchasing ban.

Earlier U.S.

action Earlier this month the Pentagon added several Chinese technology companies, including Alibaba and Baidu, to its list of firms with alleged military ties. Baidu called the designation totally baseless. The listing prevents the companies from obtaining U.S. military contracts.

The commerce ministry said Chinese companies may apply for export approval when goods are genuinely necessary. It noted that some of the 10 sanctioned firms had faced prior restrictions over U.S. arms sales to Taiwan.