China’s Commerce Ministry announced on June 22 the addition of ten US entities to its export control list, citing their connections to the US military. The move is a direct punch-back after Washington expanded its Chinese Military Companies list earlier this month, sweeping up numerous Chinese tech firms in the process.
Among the US companies now in Beijing’s crosshairs: MP Materials and USA Rare Earth, two of the most important players in America’s effort to build a domestic rare earth supply chain. Defense contractors Aveox and Oshkosh Defense also made the list.
China simultaneously restricted its government procurement agencies from buying products from 46 additional US firms, including Lockheed Martin, Raytheon, and Boeing’s defense division.
The rare earth squeeze and why it matters
China controls approximately 60% of global rare earth mining and over 90% of processing capacity. That leverage has turned rare earths into one of Beijing’s most potent economic weapons in its escalating trade conflict with Washington.
