China targets US rare earth miners as Pentagon faces restocking rush

China has placed two US rare earth miners, MP Materials and USA Rare Earth, on its export control list, banning them from purchasing Chinese exports with dual civilian and military uses. This action is a direct response to the US Department of Defense blacklisting Chinese businesses for alleged ties to the People's Liberation Army. Eight technology companies were also included in China's restrictions, which the Ministry of Commerce stated are to "safeguard national security" and counter "malicious actions" by the US. These tit-for-tat measures reflect ongoing bilateral tensions despite recent presidential summit agreements. The blacklisted miners are key to US efforts to reduce reliance on China for rare earth minerals.

China's Ministry of Commerce has added ten US companies, including rare-earth firms like MP Materials Corp and USA Rare Earths, to its export control list. This action prohibits Chinese entities from exporting "dual-use" items to these US businesses. The ministry stated the ban aims to safeguard national security and interests. Separately, China's Ministry of Finance barred Chinese government procurement from 46 US companies, excluding US-funded, locally registered entities. These moves follow the Pentagon's earlier decision to blacklist approximately 80 Chinese companies for alleged ties to the Chinese military. Experts view China's orders as a retaliatory measure.