China on June 22, 2026, added 10 US entities to its export control list, banning the export of dual-use items to them immediately. The entities include AEVEX Aerospace, Red Cat Holdings, Teal Drones, IMSAR, Jaya Robotics, Bower Aerospace Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials, and USA Rare Earth [1, 2, 3, 4, 5, 6].

Chinese authorities prohibit any export operators from sending dual-use goods, software, or technology—items with civilian and military applications—to these companies. The ban also forbids any transfer or provision of such items originating in China to these entities by individuals or organizations [1, 2, 7, 3, 4, 5, 6]. A spokesperson from the Ministry of Commerce said, “将上述10家美国涉军实体列入出口管制管控名单，任何出口经营者不得违反规定,” underscoring strict enforcement [1].

Simultaneously, China’s Ministry of Commerce and Ministry of Finance banned government procurement of products from 46 US companies, including Lockheed Martin, Raytheon, General Dynamics, and Boeing Defense. The restrictions exclude US-funded enterprises operating within China [2, 3, 8, 9, 4, 5, 10].

The measures respond directly to a US Department of Defense update on June 8, 2026, that expanded its list of Chinese military companies from 134 to 188, including major firms like Alibaba, Baidu, and BYD. The US now bars its Department of Defense from contracting directly with listed Chinese companies and, from fiscal year 2027, forbids the procurement of their products or services through third parties [1, 2, 3, 4, 5].

Among the 10 US entities controlled, rare earth companies MP Materials and USA Rare Earth were targeted, highlighting the strategic importance of rare earth supply chains. Experts believe the practical impact on these US rare earth firms may be limited, as they have mostly reduced reliance on Chinese sources. However, the controls serve as a warning to others not to join exclusive rare earth alliances against China [2, 11, 3, 8, 9, 4, 5]. A Singapore policy expert noted China is using its “rare earth card” to pressure the US to honor the strategic stability consensus reached by Presidents Xi Jinping and Donald Trump at their May 2026 summit [2, 12]. Another scholar added the controls aim to counter G7 efforts to cut dependence on Chinese rare earth imports below 60% by 2030 [2, 11, 12].

Chinese military analyst Zhang Jun she explained the controls aim to “从源头上阻断外部势力对‘台独’势力的支援，守住台湾问题这一核心利益底线,” cutting external arms supply to Taiwan independence forces via these US companies [10].

China has imposed export controls on certain rare earth elements since April 2025 and plans stricter global restrictions by November 2026 [11]. The June 22 designations and procurement bans took effect immediately [1, 2, 7, 3, 8, 9, 4, 5].