New Phase in US-China War: Beijing Cuts Off American Firms from Supplies

China has escalated its economic dispute with the United States, implementing new restrictions that prohibit the supply of specific products to selected American companies. The Ministry of Commerce announced that these extraterritorial sanctions apply to 10 U.S. entities, including those involved in rare earth metals and technology sectors like MP Materials, USA Rare Earth, Aveox, Red Cat, Teal Drones, and Ball Aerospace.

These measures explicitly "forbid organizations and individuals from any country or region from transferring or supplying dual-use items originating from China to these entities." All ongoing deliveries are ordered to be "immediately suspended." This action is framed by Beijing as a firm reaction to "malicious actions by the U.S. government in adding new entities to the so-called list of Chinese military companies."

In parallel, the Ministry of Finance has excluded 46 American firms from Chinese government procurement. Public institutions are now barred from purchasing products manufactured by these companies, which include major defense and aerospace contractors like Lockheed Martin, Raytheon Missiles & Defense, and Boeing Defense, Space & Security. This latest move by Beijing is a direct retaliation for a U.S. Department of Defense decision two weeks prior, which expanded its own blacklist to include dozens of entities accused of supporting the Chinese military.