China, Hitting Back on U.S. Sanctions, Restricting Exports to American Defense Firms

Among the 10 companies blacklisted by China are AVEOX in Simi Valley, California; Red Cat Holdings and Teal Drones, both in South Salt Lake, Utah; and IMSAR in Springville, Utah.

China, Hitting Back on U.S. Sanctions, Restricting Exports to American Defense Firms
Photo of U.S. and Chinese flag at the Great Hall of the People prior to the state dinner of President Donald Trump and Chinese President Xi Jinping on May 14, 2026, in Beijing, by Mark Schiefelbein/AP

BEIJING, June 22, 2026 (AP) — China on Monday announced sanctions on 10 American military-related companies in response to a recent U.S. move that bars some leading Chinese tech companies from defense contracts.

The Commerce Ministry said that Chinese companies would be blocked from exporting “dual-use” items to the 10 companies, which include military drone makers and some involved in rare earth mining. Dual use refers to goods that can have military as well as non-military applications.

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