China on Monday, June 22, barred government agencies from buying products made by 46 designated American companies while placing 10 more on a strict export control list, marking the latest escalation in the deepening technology and defence rivalry between Beijing and Washington.
What the Ministry of Finance Procurement Ban Covers
The Ministry of Finance issued the procurement notice on Monday, June 22, which took effect immediately. It prohibits public entities from purchasing goods manufactured by the listed firms, though products from U.S.-invested enterprises operating in China are exempt. The ministry said the step followed relevant laws and regulations and was communicated to central and local budgetary agencies.
The 46 companies are drawn mainly from the defence and aerospace sector. They include Lockheed Martin Corporation and several of its units, Raytheon Missiles & Defense, Boeing Defense Space & Security, General Atomics Aeronautical Systems, General Dynamics Land Systems, Anduril Industries, Shield AI, Sierra Nevada Corporation, AeroVironment, BAE Systems Inc. and Teledyne FLIR. An official appendix released with the notice lists the complete roster of firms involved in missiles, unmanned systems, tactical electronics and related technologies.
Which U.S. Firms Face Dual-Use Export Controls
In a parallel move, the Ministry of Commerce added 10 U.S. entities to its dual-use export control list. Chinese exporters are now barred from supplying controlled items to these firms, with immediate cessation of any ongoing shipments required. The controls also extend to third-country entities transferring Chinese-origin dual-use goods to the listed companies. Among those targeted are Aveox Inc., Oshkosh Defense, rare-earth producers MP Materials Corp. — operator of the only active U.S. rare-earth mine — and USA Rare Earth Inc., along with drone makers Teal Drones and Jaia Robotics, both subsidiaries of Red Cat Holdings, and Ball Aerospace & Technologies Corp.
Officials described the export restrictions as necessary to protect national security and fulfil international obligations, including non-proliferation commitments.
Why China Acted and What Analysts Say the Impact Will Be
The actions follow Washington's recent update to its Pentagon 1260H list of entities linked to China's military, which added major Chinese companies including Alibaba (阿里巴巴), Baidu (百度), BYD (比亞迪) and NIO (蔚來).
Analysts viewed the procurement ban as largely symbolic. "Most of the companies are U.S. defence industry players or they have close connections with the U.S. government," George Chen, partner for Greater China at the Asia Group, a geopolitical advisory firm, told Reuters. "Those companies are not going to do business in China, so the impact will be quite symbolic."
The twin measures come roughly a month after U.S. President Donald Trump met Chinese President Xi Jinping (習近平) in Beijing, where the two leaders agreed to work toward reducing tariffs. Bilateral ties have since faced fresh tests over technology transfers, defence ties and Taiwan — an issue on which China had previously sanctioned some of the same firms over U.S. arms sales to Taipei.
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