BUSINESS

China Imposes Trade Ban on 28 U.S. Defense Contractors

Published: Jan. 3 12:59 a.m. GMT+8

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The Ministry of Commerce said the move was aimed at safeguarding national security and interests and fulfilling non-proliferation and other international obligations

China named 28 U.S. defense contractors on Thursday that it is barring from access to Chinese exports that can be used for military as well as civilian purposes.

Publication of the list, which includes big names such as General Dynamics Corp., Lockheed Martin Corp. and Boeing Defense, Space & Security, marks the latest escalation in the ongoing trade tensions between Beijing and Washington over high-tech products and national security concerns.

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China has restricted 28 U.S. defense contractors, including General Dynamics and Lockheed Martin, from accessing Chinese exports for dual-use items under a new export control regime effective December 1st.
The move escalates trade tensions between China and the U.S. and is aimed at protecting national security and international non-proliferation obligations.
Affected companies can apply for exceptions, and the action follows U.S. measures against China’s semiconductor sector, similar to the U.S.'s "Entity List."

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Who’s Who

General Dynamics Corp.: General Dynamics Corp. is one of the 28 U.S. defense contractors barred by China from accessing Chinese exports that can be used for military and civilian purposes. This restriction is part of China's new export control regime for dual-use items.

Lockheed Martin Corp.: Lockheed Martin Corp. is among the 28 U.S. defense contractors barred from accessing Chinese exports for dual-use purposes. Previously, it was placed on China's unreliable entity list, prohibiting trade and investment with China and restricting its executives' entry due to its involvement in arms sales to Taiwan.

Boeing Defense, Space & Security: Boeing Defense, Space & Security is among the 28 U.S. defense contractors barred by China from accessing Chinese exports under the new export control regime for dual-use items. This move is part of escalating trade tensions between China and the U.S. over high-tech products and national security concerns. The restrictions prevent these companies from obtaining Chinese exports that can be used for both civilian and military purposes.

Raytheon Missiles & Defense: Raytheon Missiles & Defense, a U.S. defense contractor, was placed on China's unreliable entity list in February 2023. This designation barred the company from engaging in trade and investments with China and restricted its senior executives from entering the country. The action is part of escalating trade tensions and China's efforts to control exports of dual-use items, which can serve both civilian and military functions.

Lockheed Martin Missiles and Fire Control: Lockheed Martin Missiles and Fire Control has been added to China’s unreliable entity list due to U.S. arms sales to Taiwan. This means the company is barred from trade and investment with China and faces restrictions on its senior executives entering the country. This action follows the December expansion of U.S. efforts to restrict China’s semiconductor sector and the February 2023 placing of Lockheed Martin on the unreliable entity list.

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd. is included on the U.S. Entity List, which restricts their access to American technology and products due to national security concerns. This listing is part of broader U.S. efforts to curb China's high-tech sector amid trade tensions.

Shanghai Micro Electronics Equipment (Group) Co. Ltd.: Shanghai Micro Electronics Equipment (Group) Co. Ltd. is mentioned as one of the 664 Chinese companies and organizations on the U.S. Entity List. This list restricts companies from accessing certain U.S. technologies and goods due to national security concerns. The inclusion on this list indicates heightened scrutiny and trade limitations from the U.S. government.

Yangtze Memory Technologies Co. Ltd.: Yangtze Memory Technologies Co. Ltd. is mentioned in the article as one of the 664 Chinese companies and organizations included on the U.S. Entity List. This list comprises companies subjected to trade restrictions due to national security concerns, reflecting ongoing tensions between the U.S. and China, particularly in the technology and defense sectors.

Semiconductor Manufacturing International Corp.: Semiconductor Manufacturing International Corp. is listed on the U.S. Entity List, which restricts its access to certain American technologies and components. This measure is part of broader trade tensions and U.S. efforts to curb China's semiconductor capabilities. The Entity List includes companies that are believed to pose risks to national security or foreign policy interests.

AI generated, for reference only

What Happened When

November 2024：: The Ministry of Commerce issued its first list of "dual-use items" subject to export control.

December 1, 2024：: China's new export control regime for "dual-use items" came into effect.

Late December 2024：: The United States launched an investigation into China's legacy semiconductor industry.

January 2, 2025：: China named 28 U.S. defense contractors and barred them from access to Chinese exports that can be used for military and civilian purposes.