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China targets U.S. rare earth companies with new export restrictions

The move follows Washington's latest sanctions on several Chinese companies
China targets U.S. rare earth companies with new export restrictions
China tightens export curbs on U.S. companies amid trade tensions

China has expanded its export control measures against U.S. companies, adding MP Materials, USA Rare Earth and eight other American entities to its export control list in response to Washington’s latest restrictions on several Chinese firms. The move marks another escalation in the ongoing trade and technology dispute between the world’s two largest economies, with Beijing tightening controls on the supply of dual-use goods linked to critical industries. Among the companies affected is Aveox, a manufacturer of motors for mission-critical applications. Pentagon-backed MP Materials, which operates the only active rare earth mine in the United States, and USA Rare Earth are both involved in the mine-to-magnet supply chain, making them key players in the U.S. effort to strengthen domestic supplies of critical minerals.

Read more: U.S. to impose new tariffs on China semiconductor chips in mid-2027

Dual-use export ban

According to Reuters, China’s Ministry of Commerce said the measures were introduced in response to what it described as the U.S. government’s “malicious practice” of imposing restrictions on Chinese companies. The ministry said the decision was intended to safeguard China’s national security and interests while fulfilling international obligations, including non-proliferation commitments. It added that organizations and individuals in any country or region are prohibited from transferring or supplying dual-use items originating in China to the listed entities and instructed that all related export activities cease immediately.

The latest action effectively amounts to a complete ban on dual-use exports to the named companies, replacing previous rules that required exporters to obtain licences. In a separate announcement, China’s Ministry of Finance said it had also imposed measures against 46 U.S. companies, preventing Chinese buyers from procuring products manufactured by those firms, although U.S.-funded enterprises operating within China will continue to be permitted to purchase their products.

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