China Imposes Full Ban on Dual-Use Exports to 10 US Firms
China added MP Materials and USA Rare Earth, along with eight other US entities, to its export control list on Monday, effectively banning the export of dual-use items to these companies. The move is retaliation for Washington's recent restrictions on Chinese firms, according to Reuters.
Entities Linked to US Military Supply Chain
MP Materials operates the only active rare earth mine in the United States, while USA Rare Earth is involved in the mine-to-magnet supply chain. The three US companies were not available for comment outside of business hours. China's Commerce Ministry stated the measures are a response to the "U.S. government's malicious practice" and aim to safeguard national security and fulfill international obligations like non-proliferation.
Full Ban Replaces Previous Licensing Requirement
The ministry declared that "organisations and individuals in any country or region are prohibited from transferring or supplying dual-use items originating in China to those entities," and that export activities should stop immediately. This amounts to a full ban on dual-use exports to the named firms, tightening previous rules that only required export licenses.
Analysts Call Move Symbolic
Analysts view China's actions as largely symbolic, responding to the Pentagon's 1260H list of Chinese tech companies believed to aid the Chinese military. That list was updated this month to include Alibaba, Baidu, BYD, and NIO. George Chen, partner for Greater China at the Asia Group, told Reuters, "Most of the companies are US defence industry players or they have close connections with the U.S. government... Those companies are not going to do business in China, so the impact will be quite symbolic."
Additional Measures Against 46 US Companies
In a separate notice, China's finance ministry announced measures against 46 US companies, barring Chinese buyers from procuring any products made by them. However, US-funded enterprises operating in China remain exempt from this restriction.
