China has imposed export controls on 10 US companies involved in the defence sector and rare earths mining, the country's commerce ministry announced Monday.
The list includes Oshkosh Defense, a manufacturer of military vehicle fleets for the US armed forces, marking a direct escalation in the ongoing trade and technology dispute between the two powers.
The move signals Beijing's intent to leverage its dominance in critical mineral supply chains and defence-related manufacturing as a countermeasure against Western restrictions.
By targeting firms with deep ties to the US military-industrial complex, China aims to disrupt supply lines and increase costs for American defence contractors reliant on Chinese components or raw materials.
This development follows a recent wave of reciprocal sanctions.
The Trump administration recently imposed new sanctions on a major Chinese refinery and approximately 40 shipping vessels and tankers involved in transporting Iranian oil, aiming to cut off Tehran's primary revenue source.