China Responds Sharply to U.S. Blacklist, Opening New Trade War Front

China has retaliated against escalating trade tensions with the United States in the technology and defense sectors by implementing new trade restrictions. Beijing announced on Monday that it has added 10 U.S. industrial suppliers to its export control list, prohibiting the export of Chinese-origin dual-use products to these companies.

The export control list includes rare earth producers MP Materials Corp and USA Rare Earth, as well as drone manufacturers Teal Drones and Jaia Robotics. Other companies on the list are California-based electronics manufacturer Aveox Inc, Ball Aerospace & Technologies Corp, and defense equipment supplier Oshkosh Defense. In a separate announcement, China's Ministry of Finance stated that 46 U.S. companies, predominantly defense industry contractors, have been barred from public procurement projects. However, foreign-funded and locally registered firms connected to these companies will be exempt from the ban.

Beijing's action comes after the U.S. Department of Defense updated its "1260H list," commonly known as a blacklist. Washington added numerous Chinese technology companies, including Alibaba, Baidu, and BYD, to this list, alleging they have ties to the Chinese military. This latest exchange marks a new phase in the ongoing trade war between the two global economic powers.