On the 22nd, Chinese authorities issued an announcement stating that 10 U.S. entities have been added to the export control list, and have prohibited exporters from supplying dual-use items to these 10 entities.
Dual-use items refer to goods, software, or technology that have both civilian and military applications.
According to information from the official website of the Chinese Ministry of Commerce, and in accordance with relevant laws and regulations, in order to safeguard national security and interests and fulfill international non-proliferation obligations, it has been decided that Aveox, Inc. and 9 other U.S. entities are to be included on the export control list, with the following measures to be taken:
1. Export operators are prohibited from exporting dual-use items to the above 10 entities, and organizations and individuals in any country or region are prohibited from transferring or providing dual-use items originating in China to these entities; any ongoing related export activities must stop immediately.
2. If export is indeed necessary under special circumstances, exporters must apply to the Ministry of Commerce.
This announcement comes into effect upon publication.
The 10 companies include: Aveox, Inc., Red Cat Holdings, Inc., Teal Drones, Inc., IMSAR, LLC, Jaia Robotics, Inc., Ball Aerospace & Technologies Corp, Oshkosh Defense, LLC, L3Harris Maritime Services, Inc., MP Materials Corp, and USA Rare Earth, Inc.
On the 8th of this month, the U.S. Department of Defense updated the “Chinese Military Companies List” (the 1260H list), which includes well-known companies such as Alibaba, BYD, Baidu, WuXi AppTec, BOE, among a total of 188 companies, covering sectors such as electronics, aerospace, drones, automotive manufacturing, and biotech & medical. This list does not have an immediate punitive effect, but the U.S. Department of Defense is forbidden from engaging in exchanges or commercial cooperation with companies on the list.
China Bans 46 U.S. Firms from Participating in Government Procurement
In addition, China’s Ministry of Finance has issued a notification listing 46 U.S. companies whose products are prohibited from being purchased for government procurement, including U.S. defense contractors such as Lockheed Martin and Raytheon.
On the 22nd, the Chinese Ministry of Finance issued a notice on its website to central budgetary units, provincial, autonomous region, direct-administered municipality, separately listed city finance departments (bureaus), and the Xinjiang Production and Construction Corps finance bureau, stating that, effective immediately and based on relevant laws and regulations and upon approval, it is now decided that purchasers in government procurement activities must not purchase products made by 46 designated U.S. firms (excluding U.S. companies based in China).
According to the Ministry of Finance’s published list of 46 U.S. companies, these include Lockheed Martin, Raytheon Missiles & Defense, General Atomics Aeronautical Systems, Boeing Defense, Space & Security, General Dynamics Land Systems, the Javelin Joint Venture, and others.