China has added 10 American companies, including MP Materials, the world's largest rare earth supplier, to its export control list and has banned government procurement from 46 more American companies.
On June 22, 2026, China announced it would add 10 American companies, including defense-related companies and rare earth companies
Commercial Department: General 10th National Building Entrance/Exit Control Control Section_Public Trade Area Connection_Pengxi New Channel-The Paper
https://www.thepaper.cn/newsDetail_forward_33426312
China adds 10 US firms to export control list, restricts 46 from government procurement | South China Morning Post
https://www.scmp.com/economy/policy/article/3357853/china-adds-10-us-firms-export-control-list-restricts-46-government-procurement
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https://www.cnbc.com/2026/06/22/china-trade-curbs-us-companies-export-controls-procurement-exclusion-pentagon-list-.html
China Targets US Rare Earths Firms in Response to Pentagon | Financial Post
https://financialpost.com/pmn/business-pmn/china-targets-us-rare-earths-firms-in-response-to-pentagon-list
The Chinese Ministry of Commerce has decided to add 10 American companies to its 'Export Control List' and implement measures such as: 'Exporters are prohibited from exporting dual-use goods to this entity, and no country or region's organization or individual is prohibited from transferring or providing dual-use goods of Chinese origin to this entity, and all related export activities must be immediately ceased.' and 'In special circumstances where exports are truly necessary, exporters must submit an application to the Ministry of Commerce.' These measures are scheduled to take effect from the date of publication on June 22, 2026.
The following 10 companies have been added to the export control list:
• AVEOX (aerospace electronics manufacturer)
• Red Cat Holdings/Teal Drones (Military and industrial drone manufacturer)
• IMSAR (a company developing small SAR radars)
・Jaia Robotics (a company developing autonomous marine robots)
• Ball Aerospace & Technologies (satellite and space equipment manufacturer)
• Oshkosh Defense (Military truck and armored vehicle manufacturer)
• L3 Harris Maritime Services (Naval defense systems company)
MP Materials (the largest rare earth producer in the United States)
USA Rare Earth (Rare earth mining and magnet manufacturing company)
A spokesperson for China's Ministry of Commerce stated, 'China has decided to add 10 U.S. military-related companies to its export control list in accordance with relevant laws and regulations. Exports of dual-use goods to these companies are prohibited, and no exporter shall violate the above regulations.'
The list includes companies involved in military drones and defense systems, as well as key rare earth-related companies, highlighting the Chinese government's attempt to weaponize its monopoly in the magnet and rare earth supply chains. Henry Gao, a trade expert and law professor at Singapore Management University, explained that China's actions 'appear to be an attempt by China to increase its negotiating power in negotiations with the United States. From the perspective of a trade truce, this development will create new friction, but it will not necessarily derail the negotiations.'
Furthermore, the Chinese Ministry of Finance also issued a statement on the same day announcing the immediate exclusion of 46 American companies, excluding U.S.-China joint ventures based in China, from government procurement. Cameron Johnson, a partner at Shanghai-based consulting firm Tidalwave Solutions, said the measure was a 'counterattack' by the Chinese government against the U.S. government's actions, such as blacklisting Chinese companies, and warned of the possibility of further sanctions against China and Chinese companies. In fact, about two weeks before China announced the expansion of export restrictions, the U.S. Department of Defense added Chinese e-commerce giant Alibaba and China's largest search engine Baidu to its 'Section 1260H list,' a blacklist of companies allegedly supporting the Chinese People's Liberation Army.
The US adds Alibaba, Baidu, BYD, Unitree, and others to its list of companies supporting the Chinese People's Liberation Army - GIGAZINE
Analysts have pointed out that the direct commercial impact of the export restrictions may be limited because many of the targeted companies operate relatively small businesses within China. On the other hand, China remains the world's largest supplier of rare earth elements, and it is believed that the export restrictions are intended to solidify its monopolistic position and influence. According to research by the International Energy Agency (IEA), China accounts for approximately 60% of the world's mining and production of rare earth elements used in ' permanent magnets ,' which are essential for manufacturing everything from iPhones and electric vehicles to fighter jets and missiles. The IEA also noted that China's dominance in the midstream and downstream processes is even more pronounced, as it accounts for more than 90% of the rare earth refining process and nearly 95% of permanent magnet production.
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