China targets US rare earth and other firms with export controls

China has added 10 US entities, including two rare earth firms, to its export control list in retaliation for Washington's restrictions on several Chinese companies.

China ​has added 10 U.S. entities it ‌said are ​linked to the U.S. military, including two rare earth firms, to its export control list in retaliation for Washington placing several ‌Chinese companies under restrictions earlier this month.

Rare earth producers MP Materials and USA Rare Earth , as well as motor manufacturer for mission-critical applications Aveox were among those placed on the list, ‌halting Chinese dual-use exports to the companies. Pentagon-backed MP Materials, which operates the only active rare earth ‌mine in the U.S., and USA Rare Earth are both involved in the mine-to-magnet supply chain.

The three U.S. companies were not available for comment outside of business hours. The measures are a response to the "U.S. government's malicious practice" ⁠and ​were taken to safeguard ⁠national security and interests, as well as to fulfil international obligations such as non-proliferation, China's Commerce Ministry said in a ⁠statement on Monday.

"Organisations and individuals in any country or region are prohibited from transferring or supplying ​dual-use items originating in China to those entities," it said, adding that export activities should be ⁠stopped immediately. The move amounts to a full ban on dual-use exports to the named firms, tightening rules that ⁠previously ​only required export licences.

In a separate notice, China's finance ministry said it has also decided to take measures against 46 U.S. companies. Chinese buyers are now barred from procuring ⁠any products manufactured by them, though U.S.-funded enterprises operating in China can still do so. Two weeks ago, ⁠the United States ⁠added Chinese e-commerce giant Alibaba, internet search provider Baidu , and automakers BYD and NIO to a list of companies it believes are aiding Beijing's ‌military.