US-China tension deepens, Beijing imposes export ban on 10 American defense companies, ban on purchase of 46 firms

Beijing. China has imposed export controls on 10 US military-related companies in response to recent US restrictive actions. Along with this, government procurement from 46 American defense companies has also been banned. China’s move comes after US decisions that excluded several major Chinese technology companies from defense contracts.

China’s Commerce Ministry said in a statement issued on Monday that the country’s companies will no longer export dual-use goods to these 10 American companies. Dual-use items are those that can be used for both civilian and military purposes. According to the ministry, this decision has been taken to protect national security interests and in response to the allegedly inappropriate expansion of the list of Chinese military companies by the US administration.

The banned companies also include American companies involved in military drone manufacturing and rare mineral resources. At the same time, China’s Finance Ministry has issued instructions and banned government institutions from purchasing products from 46 American defense companies. These also include major companies like Lockheed Martin and Raytheon Missiles and Defense.

However, China has also clarified that if there is a genuine need for a particular item, the companies concerned can apply for export permission.

Controversy increases regarding Alibaba and Byju

Earlier this month, the US Defense Department included several Chinese technology companies, including Alibaba and Byju’s, in the list of entities it claimed to have links to China’s military. Byju had rejected these allegations calling them completely baseless.

After joining the US list, these companies will not be eligible for any contract related to the US military. China had criticized the move, saying it was contrary to the agreements reached between President Xi Jinping and Donald Trump in May.

Conflict continues over technology and trade

Trade tensions between China and America have remained constant for the last several years. The dispute is not limited to import duties, but extends to technological dominance, strategic supply chains and competition in advanced technology areas.

The US has imposed additional import duties on Chinese products in several rounds, in response to which China has also imposed retaliatory duties on American products and agricultural goods. Along with this, competition between the two countries has intensified regarding cutting-edge technologies like semiconductor, artificial intelligence (AI) and quantum computing. For this reason, both sides have been resorting to export controls and other restrictive measures from time to time.

Experts believe that this increasing tension between the world’s two largest economies could have a wide-ranging impact on global trade, investment and the technology industry.