China added MP Materials and USA Rare Earth, two US rare earth producers with Pentagon and US government backing, to its export control list on June 22, 2026 [1, 2, 3, 4]. The list includes eight other US companies linked to defense and advanced manufacturing [1, 2, 3, 4].
The export controls prohibit Chinese exporters and organizations worldwide from selling dual-use items, which can be used commercially and militarily, to these US firms [1, 2, 3, 4]. China’s Commerce Ministry said, "Organisations and individuals in any country or region are prohibited from transferring or supplying dual-use items originating in China to those entities" [3]. The Ministry added the measures were "a response to the US government's malicious practice and were taken to safeguard national security and interests, as well as to fulfill international obligations such as non-proliferation" [1].
MP Materials operates the only active rare earth mine in the US and has received $400 million in equity investment from the US Department of Defense [2, 4]. USA Rare Earth was recently awarded $1.6 billion in funding from the US Department of Commerce [4]. These companies are critical to US rare earth supply chains.
Additionally, China’s finance ministry barred Chinese buyers from procuring products manufactured by 46 US companies, though US-funded enterprises in China may still purchase them [1, 3].
The actions are retaliation for recent US restrictions imposed earlier in June 2026 on Chinese companies such as Alibaba, Baidu, BYD, and NIO, which Washington believes aid Beijing's military ambitions [1, 3, 4]. Those US restrictions followed rising tensions after US President Donald Trump’s visit to Beijing in May 2026 [5, 6].
George Chen, partner for Greater China at Asia Group, said many targeted firms are defense players with close US government ties and "not going to do business in China, so the impact will be quite symbolic" [3]. Most affected US companies have limited operations in China [3].
China’s export controls apply immediately to all organizations and individuals worldwide, banning transfers of dual-use items originating in China to the named firms [2, 4]. The move comes after a 2025 trade standoff when China first imposed export controls on rare earths and magnets from key suppliers [2, 4]. It also follows the G7 agreement to limit rare earth imports from a single non-bloc country to below 60% by 2030 [2].
The US government has not announced a direct response. The export controls mark a further escalation in the technology and trade dispute between the US and China. The export restrictions are effective immediately from June 22, 2026 [1, 2, 3, 4].
