China has expanded its export restrictions against U.S. companies
China has added MP Materials, USA Rare Earth, and eight other U.S. companies to its export control list, citing their ties to the U.S. military.
Beijing has imposed a ban on the export of dual-use products to these companies.
The list also includes Aveox, a manufacturer of electric motors for critical applications.
In particular, MP Materials, which operates the only active rare-earth mine in the U.S. and is supported by the Pentagon, and USA Rare Earth are part of the “mine-to-magnet” supply chain.
China’s Ministry of Commerce stated that these measures are a response to “malicious practices by the U.S. government” and are aimed at protecting national security and international obligations, particularly in the area of nonproliferation.
The statement emphasizes that any supply of dual-use goods to these companies is prohibited worldwide, and export activities must be immediately suspended.
In effect, this means stricter restrictions than before, when only export license requirements were in place.
China’s actions were a response to the update of the Pentagon’s U.S. 1260H list, which includes companies that, according to U.S. assessments, cooperate with Chinese military entities. Among them are Alibaba, Baidu, BYD, and NIO.
Analysts note that Beijing’s move is largely symbolic, as most U.S. defense companies have virtually no presence in the Chinese market.
Separately, China’s Ministry of Finance announced measures against 46 U.S. companies, which are now prohibited from purchasing Chinese-made products, although U.S. firms operating in China are subject to certain exceptions.
This was reported by Reuters.
Currently, the People’s Republic of China is in the final stages of preparing for the commercial launch of a large-scale digital currency project, which is expected to transform the established nature of cross-border transactions.
The Chinese yuan has fallen to its lowest level since the 2008 crisis amid Trump’s tariffs.
