China announced on Thursday that it has placed 28 U.S. companies, including major defense contractors Boeing Defense, Lockheed Martin, Raytheon Missiles & Defense, and General Dynamics, on its export control list.
According to a Global Times report, the move, which bans the export of dual-use items—goods with civilian and military applications—to these entities, was described by China’s Ministry of Commerce as necessary to “safeguard national security and interests.”
Additionally, ten U.S. firms were added to China’s “Unreliable Entities List” over their involvement in arms sales to Taiwan. These measures bar the listed firms from conducting business in China and restrict their executives from entering the country.
China’s ban on dual-use items could disrupt supply chains for U.S. defense firms, as many goods produced in China have applications for both civilian and military purposes. Items like advanced electronics, specialized materials, or even basic components such as tires could fall under these restrictions.
However, analysts suggest the practical impact may be limited since most U.S. defense companies already have restricted trade relationships with China.
The sanctions are the latest in an ongoing economic tit-for-tat between the United States and China.
Under the Biden administration, the U.S. has expanded trade restrictions on Chinese companies, including bans on exporting sensitive technologies and dual-use products.
Last month, China sanctioned seven U.S. companies in response to U.S. military aid to Taiwan and initiated an investigation into American semiconductor manufacturer Nvidia. These moves occur as Beijing anticipates increased economic pressure under a potential second Trump administration.
President-elect Donald Trump has previously promised to impose high tariffs on Chinese goods and has criticized China’s economic practices.
Experts view the recent sanctions as both a symbolic message and a strategic maneuver. Andrew Gilholm of Control Risks noted that while many of the targeted companies were already restricted in their dealings with China, the large number of entities added to the list marks an escalation.
“This shows China’s growing willingness to retaliate using its own economic tools,” Gilholm said.