China has placed 10 US companies on its export control list, citing their links to the US military as the primary justification for the restrictions.
The move represents a direct escalation in the ongoing trade dispute between the two economic superpowers.
The targeted entities include firms involved in the defence sector and rare earth mining.
Oshkosh Defense, a manufacturer of military vehicles, is among the companies named in the list.
The restrictions are designed to limit these firms' access to Chinese technology and materials, effectively cutting off supply lines for critical components used in defence applications.
This action is a retaliatory measure following Washington's decision earlier this month to place a number of Chinese firms on its own restricted list.