China has placed 10 US companies and entities on a new export control list, banning shipments of dual-use goods to the firms.

The move, announced Monday, targets organizations involved in the defense sector and rare earths mining, marking a significant escalation in the ongoing trade and security dispute between Beijing and Washington.

The sanctions are a direct response to recent US policy actions, including a report published in early June that Beijing views as a provocation.

By restricting access to dual-use technologies—items with both civilian and military applications—China aims to penalize US firms it accuses of supporting military capabilities that threaten its interests.

The list includes entities across the defense supply chain and critical mineral processing, sectors where US reliance on Chinese inputs remains high.

Markets are likely to scrutinize the exposure of US defense contractors and rare earth processors to Chinese supply chains.