China hits American companies with export, procurement curbs

June 22, 2026 (MLN): China has moved to restrict dozens of American companies from accessing Chinese exports and government contracts, responding to Washington's decision to blacklist several Chinese tech giants.

China's Commerce Ministry placed 10 US industrial suppliers on its export control list, cutting off their access to dual-use goods of Chinese origin.

Among those targeted are rare earth mining firms MP Materials Corp and USA Rare Earth, unmanned systems developers Teal Drones and Jaia Robotics, electronics maker Aveox Inc, aerospace supplier Ball Aerospace & Technologies Corp, and defence vehicle manufacturer Oshkosh Defense, according to CNBC.

In a parallel measure, China's Finance Ministry barred 46 predominantly US defence contractors from bidding on Chinese government procurement projects, though locally registered foreign-affiliated entities connected to these firms were carved out from the restrictions.

The countermeasures follow the US Department of Defense's June update to its 1260H list  a congressional designation targeting companies believed to support China's military modernisation programme  which added prominent Chinese names including Alibaba Group, Baidu, and electric vehicle giant BYD.

On the American side, the 1260H designation itself stops short of outright sanctions. It prohibits the Pentagon from directly contracting with listed companies from June 30 onwards, with restrictions on indirect procurement taking effect in 2027.

Nevertheless, the listing carries reputational weight that could discourage other federal agencies and private partners from engaging with affected Chinese firms.

Several targeted Chinese companies have pushed back legally, disputing the basis of their inclusion.

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