China adds US rare earth firms to export control list after Washington curbs

BEIJING: China has added MP Materials, USA Rare Earth and eight other US entities to its export control list, in response to Washington’s recent restrictions on several Chinese companies.

China’s Commerce Ministry said the entities were linked to the US military. The move bars organisations and individuals from transferring or supplying China-origin dual-use items to the named companies.

Aveox, a motor manufacturer for mission-critical applications, was also among the entities placed on the list.

MP Materials, backed by the Pentagon, operates the only active rare earth mine in the United States. USA Rare Earth is also involved in the mine-to-magnet supply chain.

The three US companies were not available for comment outside business hours.

China’s Commerce Ministry said the measures were taken in response to what it called the US government’s “malicious practice” and were aimed at safeguarding national security and meeting international obligations, including non-proliferation.

The move amounts to a full ban on dual-use exports to the listed firms, tightening earlier rules that required export licences.

Analysts said the action was largely symbolic, as many of the targeted firms are defence-linked companies or have close ties with the US government and are unlikely to do significant business in China.

The move follows the Pentagon’s update this month to its 1260H list of Chinese technology companies it considers linked to China’s military. The updated list included Alibaba, Baidu, BYD and NIO.

In a separate notice, China’s finance ministry said it had decided to take measures against 46 US companies.

Chinese buyers are now barred from procuring products made by those companies, although US-funded enterprises operating in China may still do so.