The world's two largest economies are again locked in a fresh confrontation, as China on Monday imposed export controls on 10 US companies linked to the defence and rare earth sectors and restricted government procurement agencies from buying products made by dozens of American firms, escalating tensions between Beijing and Washington.
The move, announced by the Chinese Commerce Ministry, came weeks after the United States expanded its blacklist of companies it accuses of supporting China's military, prompting Beijing to warn of countermeasures.
Beijing said the restrictions were introduced to protect national interests and were a direct response to Washington's latest actions.
The ministry said the export controls were “in response to the US government's egregious act of adding to its so-called 'Chinese military enterprise list'”, adding that the move was aimed to “safeguard national security”.
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Among the 10 companies facing export restrictions are Aveox, which has aerospace defence contracts with the US military, and Oshkosh Defense, a manufacturer of military vehicles. Chinese authorities have not yet disclosed the exact nature of the restrictions.
Separately, China's finance ministry announced that public procurement agencies would be barred from purchasing products from 46 US companies.
The list includes major defence contractors such as Lockheed Martin, Raytheon and Boeing's defence division.
The restrictions came into effect immediately on Monday, though US companies operating in China with local investments will be exempt from the procurement ban.
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The latest measures signal worsening relations between the world's two largest economies, despite recent efforts to stabilise ties.
The dispute intensified after Washington added around 80 Chinese companies and subsidiaries to its military-linked blacklist, including firms such as Alibaba, Baidu and BYD.
Beijing has repeatedly accused the US of using national security concerns to target Chinese companies and limit their global expansion.
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