China bans dual-use exports to MP Materials, USA Rare earth and 8 other US firms over military links

New Delhi [India], June 22 (ANI): China added MP Materials and USA Rare Earth, along with eight other US entities it linked to the U.S. military, to its export control list on Monday in retaliation for Washington’s recent restrictions on Chinese companies, Reuters reported Monday.

According to Reuters, MP Materials, which operates the only active rare earth mine in the US, and USA Rare Earth are both involved in the mine-to-magnet supply chain. The three US companies were not available for comment outside of business hours.

The measures are a response to the “U.S. government’s malicious practice” and were taken to safeguard national security and interests, as well as to fulfil international obligations such as non-proliferation, China’s Commerce Ministry said in a statement on Monday.

“Organisations and individuals in any country or region are prohibited from transferring or supplying dual-use items originating in China to those entities,” it said, adding that export activities should be stopped immediately.

The move amounts to a full ban on dual-use exports to the named firms, tightening rules that previously only required export licences, according to the news agency.

Analysts said, however, that China’s actions were a largely symbolic response to the Pentagon’s 1260H list of Chinese tech companies it believes to be aiding the Chinese military. The list was updated this month to include e-commerce giant Alibaba, internet search provider Baidu and automakers BYD and NIO.

“Most of the companies are US defence industry players or they have close connections with the U.S. government… Those companies are not going to do business in China, so the impact will be quite symbolic,” Reuters quoted George Chen, partner for Greater China at the Asia Group, as saying.

In a separate notice, China’s finance ministry said it has decided to take measures against 46 US companies. Chinese buyers are now barred from procuring any products manufactured by them, though US funded enterprises operating in China can still do so. (ANI)

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