China has introduced new trade restrictions targeting dozens of U.S. firms, in response to Washington’s latest move to expand a Pentagon blacklist of companies accused of supporting China’s military.

On Monday, China’s Ministry of Commerce added 10 American industrial suppliers to its export control list.

The firms include rare earth producers MP Materials Corp and USA Rare Earth, as well as drone manufacturers Teal Drones and Jaia Robotics.

The measure restricts the export of dual-use items from China to these companies.

Other affected firms include California-based electronics maker Aveox Inc, Ball Aerospace & Technologies Corp, and defence supplier Oshkosh Defense.

In a separate action, China’s Finance Ministry barred 46 U.S. companies, mostly defence contractors—from participating in government procurement contracts.

The restriction also extends to foreign-funded local entities linked to the listed firms, though exemptions were noted in some cases.

The measures follow a recent update by the U.S. Department of Defense to its so-called 1260H list, which added several Chinese technology firms over concerns about military links. Companies such as Alibaba Group, Baidu and BYD were among those newly included.

Analysts say Beijing’s response is largely symbolic, as many of the targeted U.S. firms have limited business exposure in China. The 1260H designation itself does not impose immediate sanctions but restricts Pentagon contracting from June 30, with broader procurement limits expected from 2027, potentially discouraging wider commercial engagement with listed entities.