China adds 10 US defense, drone and rare earth firms to export control list, bars 46 from government procurement

China announced sanctions Monday targeting US defense, drone and rare earth companies, adding 10 firms to its dual-use export control list and barring products from 46 companies — including Lockheed Martin — from government procurement.

China's Ministry of Commerce said on its website Monday that it had decided to place 10 US companies on its export control management list "in order to safeguard national security and interests and fulfill international obligations such as non-proliferation," citing the Export Control Law and regulations on dual-use item export controls.

The ministry said Chinese exporters may not ship dual-use items to the 10 listed companies, and that no organization or individual in any country or region may transfer or provide Chinese-origin dual-use goods to them.

The export control list includes drone and defense-related firms AVOX, Red Cat Holdings, Teal Drones, IMSAR, Zaiya Robotics, Ball Aerospace and Technology, Oshkosh Defense and L3Harris Ocean Systems. Rare earth companies MP Materials and USA Rare Earth were also named.

Any ongoing export activities involving the listed firms must halt immediately, the ministry said. However, companies with a compelling need to continue exports may apply to the ministry for a license.

Also on Monday, China's Ministry of Finance announced a separate measure barring products from 46 US companies from government procurement.

The Finance Ministry notified central budget agencies and local fiscal authorities through its website, saying it had "decided to implement restrictions on 46 US companies in government procurement activities through approval procedures in accordance with relevant laws and regulations."

Companies subject to the procurement ban include Lockheed Martin, Raytheon Missiles and Defense, General Atomics Aeronautical Systems, General Dynamics Land Systems and Boeing's Defense, Space and Security division.

Both measures took effect immediately upon announcement Monday.