China’s Ministry of Commerce (MOFCOM) announced on Thursday, January 2, a sweeping move against 28 U.S. defence companies by banning the export of dual-use items to them. This new measure also targets 10 of the listed companies with the addition of their names to the “unreliable entities list.” These actions are the latest in a series of economic retaliations aimed at U.S. policies.

Among the prominent companies affected are some of the largest names in the defense and aerospace sectors, including General Dynamics, Lockheed Martin, Raytheon Missiles & Defense, and Boeing Defense, Space & Security. The Chinese government’s decision to enforce this export control on dual-use products—items that have both civilian and military applications—comes as part of a broader effort to safeguard national security, protect Chinese interests, and fulfill international obligations, including non-proliferation agreements.

In addition to the export ban, 10 of the companies on the list—five subsidiaries of Lockheed Martin, three of General Dynamics, Raytheon Missile Systems, and a joint venture between Lockheed Martin and Raytheon—have been added to China's “unreliable entities list.”

This designation prohibits these companies from conducting any import or export activities with mainland China and restricts them from making new investments in the country. Furthermore, senior executives of these companies will face travel restrictions like being banned from entering China, with their work permits and residency rights also subject to cancellation or denial.

The Ministry of Commerce emphasized that the sanctions were a direct response to U.S. actions that undermine China's national sovereignty. According to the ministry's statement, these firms were involved in the continued supply of military technology to Taiwan, despite strong opposition from Beijing. This activity, the statement claims, violates the One-China principle and the provisions outlined in the three U.S.-China joint communiqués regarding Taiwan.

While the impact on the listed companies may be limited in the short term, as many of them already face sanctions, the widening scope of China’s actions reflects the increasing intensity of the rivalry between the two superpowers. The sanctions come as the Biden administration continues to support Taiwan’s defense, intensifying tensions in an already complex diplomatic landscape.

Earlier in December 2024, China had imposed restrictions on the export of several critical materials to the United States, including gallium, germanium, antimony, and superhard materials. These materials had both civilian and military applications, leading China to cite national security concerns as the rationale for these export controls. Additionally, the export of graphite, a widely used material in various industries, was also subjected to stricter scrutiny.