China announced on Monday that it will add 10 American firms to its export control list, including two rare earth firms, while also restricting 46 US firms from government procurement, signalling it would respond to Washington’s recent expansion of a military blacklist, even amid a broader stabilisation of bilateral ties.Analysts said that the measures from both sides so far were unlikely to significantly derail relations, though they also warned of the impact from any escalation.The Ministry of Commerce said in a statement on Monday that the 10 American firms to be added to the export control list were Aveox, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace & Technologies, Oshkosh Defence, L3Harris Maritime Services, MP Materials and USA Rare Earth.A spokesperson for the Ministry of Commerce said the decisions were made in response to “malicious actions” by the US government, after the US Department of Defence expanded its list of “Chinese military companies”.“China has decided, in accordance with the relevant laws and provisions… to include Aveox, Inc. and nine other US military-related entities on the export control list. The export of dual-use items to these entities is prohibited, and no export operators shall violate the above provisions,” said the commerce ministry spokesperson.On June 9, the Pentagon said it was adding dozens of Chinese companies to a list of entities it says were linked to China’s military, widening a blacklist perceived as targeting sectors at the heart of US-China technological competition.