China sanctions 10 US firms in tit-for-tat escalation over Pentagon blacklist

Beijing targets defense and rare earths companies, widening the scope of US-China trade friction and raising risks for supply chains.

By Handelsavisen Newsroom · Automated 2026-06-22 05:52 UTC · 1 min read

China has imposed sanctions on 10 US companies, escalating a tit-for-tat trade and defense dispute with Washington.

The measures target firms involved in defense and rare earths mining, marking a direct response to the Pentagon’s recent blacklist of Chinese entities.

This move signals Beijing’s willingness to broaden the scope of economic retaliation beyond previous rounds of sanctions.

The latest action adds to a growing list of US firms facing restrictions in China.

In prior escalations, Beijing targeted major defense contractors including Lockheed Martin, Boeing, and General Dynamics.

The current round of sanctions appears designed to pressure US industry while signaling resolve in the ongoing geopolitical standoff.