China: imposes sanctions on 10 US companies operating in the defence and rare-earth sectors

Export of goods with potential dual-use applications is prohibited

China has announced sanctions against ten US companies operating primarily in the defence and rare-earth sectors. Beijing justified the measures by referring to the publication, in early June, of a new Pentagon blacklist, which included companies such as Alibaba and BYD, accused of collaborating with the Chinese military. The US companies subject to sanctions have been added to the list of organisations to which the export of goods with potential ‘dual-use’ (civilian and military) applications is prohibited. “No organisation or individual, from any country or region, is permitted to transfer or supply dual-use products of Chinese origin to these entities,” the Ministry of Commerce stated in a press release. The Ministry also specified that all ongoing exports must cease immediately and that the measure comes into force today.

Among the companies affected are Usa Rare Earth, which operates in the rare-earth sector and is committed to reducing the United States’ dependence on China for these strategic raw materials, as well as Red Cat, which specialises in drones and robotics, and Aveox, a manufacturer of high-power electromechanical systems, both of which operate in the defence sector. According to a spokesperson for the Department of Commerce, the restrictions were imposed “in response to the US government’s unacceptable decision to add new entities to the so-called list of Chinese military companies”.

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