China targets 10 U.S. firms in widening export-control fight

China tightened its pressure campaign against Washington by placing 10 U.S. entities on its export-control list, cutting off Chinese exporters from selling dual-use goods to firms tied to military, aerospace and critical-mineral supply chains. The move reaches from rare-earth processors to drone makers and military contractors, showing how obscure inputs have become strategic leverage in the U.S.-China rivalry.

China’s Commerce Ministry said the action was a response to the U.S. government’s “malicious practice” and was meant to safeguard national security and meet non-proliferation obligations. The ministry said any ongoing export activities with the listed companies should stop immediately. China’s finance ministry separately said it would take measures against 46 U.S. companies.

The 10 entities named by China included Aveox, MP Materials, USA Rare Earth, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace & Technologies Corp., Oshkosh Defense and L3Harris Maritime Services. Chinese buyers were also barred from procuring products manufactured by the listed firms, although U.S.-funded enterprises operating in China were still allowed to do so. The scope of the restrictions widened the fight beyond rare earths alone, reaching into drones, robotics, aerospace systems and military vehicles.

The latest move came after the United States expanded its Section 1260H Chinese military companies list on June 8, 2026, adding Alibaba Group Holding Limited, Baidu, BYD and NIO. The Pentagon’s designation says companies on that list operate directly or indirectly in the United States and are tied to China’s military-civil fusion ecosystem. China framed its own step as retaliation for those actions, and the fast back-and-forth underscored how export controls have become one of the main tools of economic statecraft between the world’s two largest economies.

The danger for U.S. industry is not only diplomatic escalation but supply-chain fragility. Rare-earth producers such as MP Materials and USA Rare Earth sit near the base of manufacturing for defense-linked technologies, while firms such as Ball Aerospace & Technologies Corp., Oshkosh Defense and L3Harris Maritime Services sit closer to end-use systems for aerospace and the military. If tensions deepen, manufacturers that rely on transpacific sourcing of specialized materials and components could face longer delays, fewer suppliers and more uncertainty around contracts already intertwined with national security.