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The
ministry said the export ban was both to safeguard China’s
national security and in response to what it called the U.S.
government’s “wrongful expansion of its so-called List of
Chinese Military Companies.”
George Chen, partner for Greater China at the advisory firm The
Asia Group, said the ban was an unsurprising and proportionate
response to the U.S. restrictions.
“Most of them are U.S. defense industry players or they have
close connections with the U.S. government for contracts and
other reasons,” he said. “Those companies are not going to do
business in China, so the impact will be quite symbolic.”
Separately, the Finance Ministry said that government entities
would be prohibited from buying products from 46 American
companies including multiple units of Lockheed Martin, Raytheon
and General Dynamics. A brief statement did not give any reason
for the prohibition.
Earlier this month, the U.S. Defense Department added several
tech companies including Alibaba and Baidu to its list of firms
that it says have links to the Chinese military. Baidu said the
suggestion that it is a military company is “totally baseless.”
The designation prevents them from getting U.S. military
contracts.
The Commerce Ministry said at the time that the American
sanctions run counter to the consensus that Chinese leader Xi
Jinping and U.S. President Donald Trump reached during Trump's
visit to China in May.
In Monday's announcement, the ministry said that companies or
individuals in third countries are prohibited from transferring
dual-use items from China to the sanctioned American firms. It
also said that Chinese companies could apply for export approval
for goods that are “genuinely necessary.”
The 10 companies are AVEOX in Simi Valley, California; Red Cat
Holdings and Teal Drones, both in South Salt Lake, Utah; IMSAR
in Springville, Utah; Jaia Robotics in Bristol, Rhode Island;
Ball Aerospace & Technologies in Broomfield, Colorado; Oshkosh
Defense in Oshkosh, Wisconsin; L3Harris Maritime Services in
Norfolk, Virginia; MP Materials in Las Vegas; and USA Rare Earth
in Stillwater, Oklahoma.
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