China retaliates against Washington and hits American rare earth companies with new export restrictions

China has decided to impose export controls on several American companies operating in strategic sectors, including rare earth elements. This measure comes amid escalating trade and technology tensions between Beijing and Washington.

Among the targeted entities are MP Materials and USA Rare Earth. Chinese authorities claim these companies have ties to the US military, a justification used to justify their inclusion on an export control list.

This decision entails the suspension of Chinese exports of so-called "dual-use" goods to these companies—that is, materials and technologies that can have both civilian and military applications. Beijing also added eight other US entities to this list, thus broadening the scope of the restrictions.

Another company affected is Aveox, which specializes in producing engines used in sensitive sectors. This measure deprives these companies of access to Chinese supplies in strategic areas, particularly critical materials.

Chinese authorities present this decision as a direct response to recent US restrictions on several Chinese companies. It illustrates a new escalation in the economic rivalry between the two powers, particularly in sectors related to advanced technologies and strategic resources.