Beijing Responds to U.S. Actions
China has announced sanctions on ten American military-related companies. This reaction follows the U.S. barring certain Chinese tech firms from defense contracts. The move by China’s Commerce Ministry entails a restriction on exporting ‘dual-use’ items to these American firms. ‘Dual-use’ refers to goods applicable in both military and civilian spheres.
The Chinese government stated the export ban aims to protect national security and address the U.S. government’s ‘unjust expansion’ of its list identifying Chinese Military Companies. Concurrently, China’s Finance Ministry declared a prohibition on government entities from purchasing products from 46 American companies, including divisions of Lockheed Martin, Raytheon, and General Dynamics.
These sanctions come shortly after the U.S. Defense Department added several tech companies, including Baidu and Alibaba, to its list of firms purportedly connected to the Chinese military. Baidu has refuted claims of being a military entity, calling them ‘completely unfounded.’ This label restricts these companies from U.S. military contract eligibility.
The Commerce Ministry claims these American sanctions contradict an agreement between Presidents Xi Jinping and Donald Trump from Trump’s 2016 visit to China. The latest Chinese announcement further specifies that parties from third countries cannot transfer dual-use items to sanctioned American companies. However, Chinese firms may seek export approval if the items are deemed ‘genuinely necessary.’
Companies affected by China’s sanctions include AVEOX in California, Red Cat Holdings and Teal Drones in Utah, IMSAR in Utah, Jaia Robotics in Rhode Island, Ball Aerospace & Technologies in Colorado, Oshkosh Defense in Wisconsin, L3Harris Maritime Services in Virginia, MP Materials in Nevada, and USA Rare Earth in Oklahoma.