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 powers, targeting firms involved in the defense sector and rare earths mining.
Oshkosh Defense, a manufacturer of military vehicles, is among the entities named in the list announced by the country's commerce ministry on Monday.
The announcement comes just one month after President Donald Trump visited Beijing, a trip widely viewed as an attempt to ease bilateral tensions and stabilize trade relations.
Instead of de-escalation, the new restrictions suggest that strategic competition remains the dominant driver of policy, particularly in sectors deemed critical to national security.
The timing indicates that Beijing is responding to perceived threats from US defense capabilities rather than engaging in broader economic cooperation.