China Expands Trade Fight, Blocks Exports to U.S. Defense Firms

International

China has imposed new export restrictions on 10 U.S. companies, marking a sharp escalation in its ongoing dispute with Washington over technology and military links, according to Anadolu.

The move, announced Monday by China’s Commerce Ministry, places the firms on Beijing’s export control list. This means Chinese exporters are now barred from supplying them with “dual-use” items goods and technologies that can serve both civilian and military purposes. Among the affected companies are Aveox Inc., Red Cat Holdings, Teal Drones, Ball Aerospace & Technologies, and Oshkosh Defense.

Officials said the decision was made to protect China’s national security and to comply with laws governing sensitive exports. The ministry also framed the step as part of its broader commitment to international non-proliferation efforts.

The restrictions come in direct response to a recent U.S. action. Earlier this month, the Pentagon expanded its so-called “1260H list,” which identifies companies it believes are linked to China’s military. The updated list included major Chinese firms such as Alibaba, Baidu, and electric vehicle maker BYD.

China’s latest measures go further than limiting domestic exporters. Organizations and individuals worldwide are now prohibited from transferring Chinese-origin dual-use items to the listed U.S. entities, tightening the global reach of the restrictions.

In a parallel step, China’s Finance Ministry has also barred government agencies from purchasing products made by 46 designated U.S. companies through public procurement programs. The list includes major defense contractors such as Lockheed Martin and Raytheon Missiles & Defense.

Together, these actions signal a deepening tit-for-tat dynamic between the world’s two largest economies, as both sides increasingly use trade and technology controls as tools of strategic competition.