China blacklists 10 U.S. firms from dual-use exports, bars government purchases from 46 U.S. companies

China on June 22 unveiled two separate restrictions on U.S. companies at once, blacklisting 10 firms from receiving Chinese dual-use exports and barring Chinese government buyers from purchasing products from 46 U.S. companies.

The more consequential action for global supply chains came from China’s Commerce Ministry, or MOFCOM, which added 10 U.S. entities to its export-control list in Announcement No. 23 of 2026, according to official Chinese reporting carried by Xinhua. The companies include MP Materials Corp., USA Rare Earth, Ball Aerospace & Technologies Corp., Oshkosh Defense and L3Harris Maritime Services. A separate Finance Ministry notice, identified as 财库〔2026〕10号, told government purchasers not to buy products made by 46 U.S. companies. Both measures took effect immediately.

In plain terms, the MOFCOM action bars Chinese exporters from shipping Chinese-origin dual-use items — goods and technologies with both civilian and military uses — to the 10 listed firms. Xinhua quoted the ministry as saying: “Effective as of the date of this announcement, export operators are prohibited from exporting dual-use items to the 10 entities … Relevant ongoing export activities shall be immediately halted.” MOFCOM also said organizations and individuals from any country may not transfer Chinese-origin dual-use items to those entities, a provision that could affect supply chains beyond direct China-to-U.S. shipments.

That matters because two of the named companies, MP Materials and USA Rare Earth, are central to the U.S. push to build a domestic rare-earth supply chain. Rare earths and the magnets made from them are critical for fighter jets, missiles, radar and sonar systems, as well as electric-vehicle motors, wind turbines and consumer electronics. China holds an outsized share of global rare-earth refining and processing capacity — often estimated at roughly 80% to 90% for some stages — giving it leverage even when mining happens elsewhere.

MP Materials stands out in particular. The company announced in July 2025 a major public-private partnership with the U.S. Department of Defense, including a $400 million Pentagon investment and long-term support tied to building U.S. rare-earth magnet capacity. Major media outlets have described MP Materials and USA Rare Earth as key to Washington’s effort to reduce dependence on China from mine to magnet.

China said the export-control step was taken under its Export Control Law and related regulations. MOFCOM, as quoted by Xinhua, said the move was intended to “safeguard national security and interests, and fulfill international obligations such as non-proliferation.” Chinese official reporting also linked the June 22 actions to earlier U.S. steps this month expanding a Pentagon list of Chinese companies alleged to have military ties. State-linked reporting framed the Chinese measures in that context.

The procurement measure is narrower than a full trade ban. It applies to Chinese government purchasing and covers 46 U.S. companies, but it explicitly excludes U.S.-funded enterprises operating in China. The official notice included an attachment listing the affected companies, but the broad significance is that Beijing paired a targeted export-control step with a separate state-purchasing restriction on the same day.

Analysts quoted by The Washington Post and Bloomberg said the immediate commercial impact on some firms, especially MP Materials, may be limited because they have been working to reduce reliance on China. Even so, the move is geopolitically significant. By targeting companies tied to rare-earth and defense supply chains — and by extending the transfer restriction to Chinese-origin items moving through third parties — Beijing signaled that it is willing to use its existing export-control framework against U.S. firms central to America’s effort to diversify away from Chinese supply.