The BYD logo is displayed at a BYD dealership in Beijing, China, on June 9. The Pentagon added Chinese companies Alibaba, BYD, and Baidu, among others, to a list of firms it said aid the Chinese military. Photo by Jessica Lee/EPA
June 22 (UPI) — China announced Monday that it is adding 10 U.S. defense companies to its export control list, restricting business with those firms.
The move prohibits Chinese companies from exporting certain items to those companies, including drones, robotic hardware and software that is used for defense and national security capabilities. There are also items for nonmilitary uses that are restricted.
The companies added to the export control list are: AVEOX, Red Cat Holdings, Teal Drones, IMSAR, Jaia Robotics, Ball Aerospace and Technologies, Oshkosh Defense, L3Harris Maritime Services, MP Materials and USA Rare Earth.
“Exporters are prohibited from exporting dual-use items to the aforementioned 10 entities, and any organization or individual from any country or region is prohibited from transferring or providing dual-use items originating in China to the aforementioned entities; any ongoing related export activities must be immediately ceased,” the Chinese Ministry of Commerce announced.
The Chinese Finance Ministry also announced that 46 U.S. companies are banned from participating in government procurement projects. Many of those companies are also defense contractors.
Companies that are banned from participating in government procurement projects include Lockheed Martin, Raytheon and General Atomics.
Both bans take effect immediately, however China has included some flexibility in situations where exporting is “truly necessary.”
China’s new trade restrictions are in response to the Pentagon accusing a number of Chinese companies of aiding its military. The Pentagon updated its list of companies believed to be aiding the Chinese military earlier this month, blocking the Department of Defense from awarding direct contracts to those companies.
The update included the additions of Alibaba Group, Baidu and BYD, a Chinese automaker.