ASIATODAY.ID, BEIJING — China has intensified its strategic confrontation with the United States by imposing strict export restrictions on rare earth-related products and dual-use goods for 10 American companies, including major defense contractors that supply the U.S. military.
China’s Ministry of Commerce announced on Monday that exporters are prohibited from selling dual-use items—products with both civilian and military applications—to the targeted firms. Among those named is Oshkosh Defense, a leading manufacturer of tactical military vehicles for the U.S. armed forces.
The move marks a significant escalation in the technology and supply-chain rivalry between the world’s two largest economies. Beyond export controls, Beijing has also barred Chinese government agencies and public institutions from purchasing products from 46 U.S. entities, including defense giants Lockheed Martin, Raytheon, and Boeing’s military divisions.
The latest measures underscore Beijing’s growing willingness to leverage its dominance in rare earth supply chains as a strategic tool amid rising geopolitical tensions with Washington.
“Export operators are prohibited from exporting dual-use items to the entities listed,” the Ministry of Commerce said in a statement.
China added that U.S.-invested companies operating within its territory would be exempt from the procurement ban, suggesting Beijing is attempting to balance geopolitical retaliation with domestic economic interests.
Retaliation Against Washington’s Blacklist
The restrictions are widely viewed as a direct response to the Pentagon’s decision earlier this month to expand its blacklist of Chinese companies allegedly linked to the country’s military modernization efforts.
On June 9, the U.S. Department of Defense added dozens of Chinese firms and subsidiaries to its blacklist, bringing the total number of targeted entities to 80. The list includes some of China’s most influential technology companies involved in artificial intelligence and advanced computing, including Alibaba, Baidu, and Tencent, as well as memory-chip manufacturers ChangXin Memory Technologies and Yangtze Memory Technologies.
Washington argues that the companies support China’s military development, an accusation Beijing has repeatedly rejected.
Rare Earths Become a Geopolitical Weapon
The latest restrictions highlight the growing strategic importance of rare earth minerals, which are essential for semiconductors, electric vehicles, advanced electronics, missile systems, radar technologies, and other defense applications.
China controls a dominant share of the world’s rare earth processing capacity, giving Beijing substantial influence over global supply chains. Any tightening of exports could increase pressure on U.S. manufacturers, particularly in the defense, aerospace, and high-technology sectors.
Analysts say the U.S.-China rivalry has evolved far beyond tariffs and trade balances, shifting toward competition over advanced technologies, artificial intelligence, semiconductors, and critical minerals that will underpin future economic and military power.
As both nations continue expanding blacklists and restricting access to strategic technologies and raw materials, the global economy is moving closer to a partial decoupling of supply chains, with competing blocs emerging around Washington and Beijing.
For global markets, China’s latest move serves as a reminder that rare earths are no longer merely industrial commodities. They have become geopolitical assets capable of shaping the balance of economic and military power in the twenty-first century. (AT Network)
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