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China added 10 companies to its export control list on Monday, blocking its exporters from selling any dual-use items to U.S. defense firms.
The items range from drones to robotic hardware and swarm software used primarily for defense and national security operations in addition to some nonmilitary functions.
“Exporters are prohibited from exporting dual-use items to the aforementioned 10 entities, and any organization or individual from any country or region is prohibited from transferring or providing dual-use items originating in China to the aforementioned entities; any ongoing related export activities must be immediately ceased,” an announcement from the Chinese Ministry of Commerce says.
The banned corporations include AVEOX of California; Red Cat Holdings, Teal Drones and IMSAR of Utah; Jaia Robotics of Rhode Island; Ball Aerospace & Technologies of Colorado; Oshkosh Defense of Wisconsin; L3Harris Maritime Services in Virginia; MP Materials in Las Vegas; and USA Rare Earth in Oklahoma.
The announcement went into effect immediately but also provides leeway for special circumstances where export is “truly necessary.”
In addition to the ban, Beijing also barred government entities from purchasing products manufactured by 46 American corporations, further cutting ties with the U.S. Lockheed Martin, Boeing, Raytheon and Axient are some of the companies included on the list.
The decision comes after the Pentagon moved to add various Chinese companies to its 1260H list earlier this month, prohibiting firms from contracting with the Department of Defense. Tech giant Alibaba, electric car maker BYD and search engine Baidu were added to the list for their alleged ties with Beijing’s military.
House Select Committee on the Chinese Communist Party Chair John Moolenaar (R-Mich.) called it “a warning to American businesses, all levels of government, and the American people.”
Last week, Moolenaar, alongside other lawmakers, urged U.S. officials to take matters a step further by barring American defense contractors from employing lobbyists or firms representing Chinese military companies.
The Chinese Embassy accused the U.S. of “making discriminatory lists to go after Chinese companies,” as reported by The Associated Press.
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