China adds 10 US firms, including rare-earth miner, to export control list
Export ban follows move by Pentagon to blacklist major Chinese companies like Alibaba and Baidu. China has added 10 United States-based companies to its export
Export ban follows move by Pentagon to blacklist major Chinese companies like Alibaba and Baidu. China has added 10 United States-based companies to its export control list and barred government procurement from nearly 50 US companies two weeks after the Pentagon blacklisted some of China’s best-known companies for their alleged ties to the Chinese military. China’s Ministry of Commerce announced the export order on Monday, barring Chinese companies from exporting “dual-use” items that can be used for civilian or military purposes to the US firms. The list of companies includes rare-earth mine operator MP Materials Corp, rare-earth magnet maker USA Rare Earths, and US defence contractors specialising in fields such as aerospace, drones, synthetic-aperture radar, and shipbuilding and repairs. Under the order, “foreign institutions and individuals worldwide are also prohibited from transferring or providing Chinese dual-use goods to them” while ongoing export transactions must be suspended immediately. The Commerce Ministry said the export ban had been issued to “safeguard national security and interests and fulfil international obligations such as non-proliferation”. China’s Ministry of Finance on Monday separately barred Chinese government procurement from 46 companies, including subsidiaries of major US defence contractors like Lockheed Martin, Boeing, General Atomics and General Dynamics.
US-funded, locally registered companies, however, have been given an exemption by the ministry. Experts described Beijing’s orders as a retaliation, albeit a largely symbolic one, against the US after the Pentagon in early June added about 80 Chinese companies and their subsidiaries to its list of “Entities Identified as Chinese Military Companies Operating in the United States”. The designation means the Pentagon either believes the companies are owned or controlled by the Chinese military or they are “military-civil fusion contributors”, a term for commercial companies that contribute to China’s military development despite their civilian status. The updated list includes Chinese e-commerce giant Alibaba Holdings, search engine giant Baidu and electric automaker BYD, some of China’s largest and best-known companies. While the order does not bar US companies from doing business with them, it does impact US defence contractors and their future supply chains. “We can interpret this as a tit-for-tat response, and that fits into China’s playbook any time we’ve seen escalation from the US side in terms of trade and investment tools,” said Nick Marro, global trade lead analyst at the Economist Intelligence Unit.
