Beijing imposed export controls on ten U.S. industrial suppliers on Monday, including rare earth miners and drone manufacturers, escalating the ongoing trade tensions between the two nations.
China’s Ministry of Commerce has targeted ten American industrial suppliers, including MP Materials Corp. (NYSE:MP) and USA Rare Earth Inc. (NASDAQ:USAR), and drone manufacturers Teal Drones and Jaia Robotics. The list also includes California-based electronics manufacturer Aveox Inc, Ball Aerospace & Technologies Corp, and military equipment supplier Oshkosh Defense. The new regulations prohibit exports of any dual-use items originating in China to these companies.
The Ministry stated that these measures are a response to the “U.S. government’s malicious practice” and are intended to protect national security and interests, as well as to fulfill international obligations such as non-proliferation.
In a separate statement on Monday, China’s Finance Ministry said it has barred 46 U.S. companies—primarily defense contractors—from participating in Chinese government procurement projects. However, foreign-funded companies registered locally in China and their affiliates are exempt from the restriction.
