China’s Ministry of Commerce faces a US-China trade spat as Beijing expands export controls and narrows ties with selected American entities.
China has placed 10 US companies, including rare‑earth producers MP Materials and USA Rare Earth and several drone makers, on its export control list, barring Chinese companies from selling dual‑use items to them. Beijing has also excluded 46 US firms from government procurement, and has framed the moves as retaliation for a recent Pentagon blacklist of Chinese companies.
China pushes back on claims of “China Shock 2.0,” arguing the issue is untenable and viewing recent trends as an opportunity, while preparing to meet U.S. tariffs and EU protections.
Beijing has announced a broad package of countermeasures in response to recent U.S. moves, including sanctions on American entities, tighter export controls on drones and dual-use tech, and case-by-case reviews of certain exports. The measures come ahead of high-level talks and are aimed at pressuring the United States while keeping room for de-escalation.