China's Ministry of Commerce on June 22 banned the export of dual-use items to 10 U.S. companies, including rare earth producers MP Materials Corp. and USA Rare Earth, and defense companies Ball Aerospace & Technologies Corp. and L3Harris. The same day, China's Ministry of Finance announced that it had banned government procurement from 46 U.S. companies, including Lockheed Martin Corp., General Atomics Aeronautical Systems and Raytheon Missiles & Defense, in a post on its eProcurement website.

China's restrictions, as well as the U.S. additions of Chinese companies to the Chinese military company list earlier in June, are narrower in scope than the more drastic moves from both sides in 2025. Last year, the United States restricted exports to virtually all previously designated overseas Chinese subsidiaries, and China implemented restrictions on exports containing Chinese-controlled goods produced in third countries. These moves led to quick tit-for-tat escalation.