China strikes back: sanctions against 10 US companies over "dual-use" goods

China has announced it is imposing sanctions on 10 American companies in response to recent restrictions from the United States. According to Beijing, the measure is motivated by the need to protect the country's "national security and national interests," as well as a desire to comply with international obligations.

In an official statement, China's Ministry of Commerce indicated that Chinese companies are prohibited from exporting "dual-use" goods to the 10 listed American firms. "Dual-use" refers to products that can be utilized for both civilian and military purposes.

The restrictions primarily affect manufacturers of military drones, companies operating in the mining and processing of rare earth elements, and enterprises that produce high-tech products with potential military application. Such goods are key to the modern defense industry, electronics, and telecommunications.

The new Chinese sanctions come as a response to actions taken by Washington earlier this month. At that time, the US Department of Defense added several more major tech players, including Alibaba and Baidu, to its list of companies alleged to have ties to the Chinese military. Being placed on this list restricts these firms' ability to enter into military contracts with the United States and subjects them to stricter oversight.

The Chinese Ministry of Commerce stated that the US sanctions contradict the understanding reached between Chinese President Xi Jinping and US President Donald Trump during the American leader's last visit to China. According to Beijing, Washington's latest actions undermine the spirit of the agreed-upon "de-escalation" and intensify tensions in bilateral economic relations.

As part of China's retaliatory measures, it is intended not only to block direct exports from China to the sanctioned American companies but also to prohibit Chinese firms or individuals in third countries from transferring dual-use goods to these companies. In doing so, Beijing is attempting to prevent the circumvention of restrictions through intermediaries.

China's decision is another episode in the ongoing economic and technological standoff between the world's two largest economies. The sanctions against key companies from both sides underscore that competition in the spheres of high technology, defense, and critical resources is increasingly being conducted not only in the market but also through political and regulatory tools.