China Imposes Sanctions on American Military-Related Companies

1 week ago 0

The Chinese government announced on Monday new sanctions targeting ten American military-related companies. This decision comes in response to recent U.S. actions restricting certain prominent Chinese tech firms from engaging in defense contracts.

The Ministry of Commerce stated that these American companies will face restrictions on the export of “dual-use” items. These are goods that serve both military and civilian purposes. The measure includes military drone manufacturers and firms involved in rare earth mining.

According to the ministry, the export ban aims to protect China’s national security. It also responds to what China perceives as the U.S. government’s unfounded expansion of its “List of Chinese Military Companies.” The list now prevents several Chinese tech companies, such as Alibaba and Baidu, from acquiring U.S. military contracts. Baidu has rejected the notion that it is a military entity.

The Finance Ministry further declared a prohibition on purchasing products from 46 U.S. companies by Chinese governmental entities. These include various units of Lockheed Martin, Raytheon, and General Dynamics. The statement did not specify a reason for this particular ban.

“Earlier this month, the U.S. Defense Department added Alibaba, Baidu, and others to a list of firms with alleged ties to the Chinese military.”

China has also restricted companies or individuals in third countries from transferring dual-use goods from China to these sanctioned American companies. Nonetheless, Chinese firms can seek approval to export goods deemed “genuinely necessary.”

The impacted American companies are: