China slaps export controls on 10 US firms

China imposed a sweeping set of countermeasures against the United States on Monday, placing 10 US companies on an export control list and barring government agencies from purchasing products from 46 others, in a direct response to Washington's recent expansion of its list of so-called Chinese military-linked companies.

The actions, taken less than two weeks after the Pentagon added Chinese companies to its list in sectors such as electric vehicles, artificial intelligence, biotech and robotics, are aimed at pressuring the US to revoke its wrongful classifications and return to the track of dialogue and cooperation, experts said.

The Ministry of Commerce announced the addition of 10 US entities to its export control list on Monday, banning the sale of dual-use items — goods and technologies with both civilian and military applications — to companies spanning the aerospace, defense, robotics, maritime services and rare earth sectors.

Organizations and individuals from any country or region are prohibited from transferring or providing dual-use items originating in China to the listed entities, and any ongoing export activities must be ceased immediately, according to the announcement.

A ministry spokesperson said in a separate statement that the move is necessary to "respond to the US government's malicious addition to the so-called 'Chinese military company list'".

The updated list now includes over 180 Chinese entities, with the scope extending far beyond traditional defense industries into sectors such as cloud computing, AI, biotechnology and robotics.

Washington's blacklisting drive to curb China's technological ascent through supply chain restrictions has added new volatility to a relationship that has shown tentative signs of a thaw after the two heads of state reached a series of consensuses in Beijing last month, experts said.

"China does not initiate friction, nor does it allow unilateral bullying to spread unchecked," said Liao Fan, director of the Chinese Academy of Social Sciences' Institute of World Economics and Politics. "When others cross the line, we respond in accordance with regulations to defend national security red lines, protect our industrial interests and safeguard the order of global trade."

Liao also noted that this will form a "deterrence mechanism", forcing Washington to think twice before imposing further sanctions.

A survey released by the US-China Business Council earlier this month found that the mounting pressure on US businesses in China stems increasingly from the uncertainty surrounding US export controls, and the Chinese countermeasures that the US actions inevitably provoke are compounding the challenges for US companies on the ground.

Any further expansion of Beijing's export controls will likely force US companies into a costly and years­long scramble to rebuild their supply chains, according to survey respondents.

In a separate measure on Monday, the Ministry of Finance announced a ban on government procurement from 46 US companies, including major defense contractors Lockheed Martin and Raytheon. The ban also excludes the affected companies' subsidiaries from operating in China.

The calibrated nature of the response, which targets specific entities rather than broad sectors and exempts US-invested companies operating in China, suggests that Beijing is seeking to pressure Washington to reverse course, not to escalate tensions, said Cui Fan, a professor at the University of International Business and Economics in Beijing.

wangkeju@chinadaily.com.cn