China's Ministry of Commerce (MOFCOM) announced on June 22, 2026, the addition of 10 U.S. entities to its export control list, including two prominent rare earth producers: MP Materials Corp. and USA Rare Earth Inc. This action, taken under China's Export Control Law and Regulations on Export Control of Dual-Use Items, aims to protect national security and interests, as well as uphold international non-proliferation commitments. The move is viewed as a response to the U.S. expanding its “China military-industrial entity” list.
MP Materials is the sole operating rare earth mine operator in the United States, while USA Rare Earth Inc. is pursuing a vertical integration strategy from mining to magnet manufacturing. This marks the first instance of China including U.S. rare earth enterprises on its export control list, directly impacting Washington's efforts to establish alternative supply chains for critical minerals.
Under the new restrictions, Chinese companies are prohibited from exporting dual-use items to these 10 entities, and organizations or individuals worldwide are forbidden from transferring or supplying Chinese-origin dual-use items to them. All ongoing export transactions must be suspended immediately, with any exceptions requiring approval from MOFCOM. Dual-use items are civilian goods with potential military applications, such as advanced semiconductors or precision manufacturing equipment.
In a related development on the same day, China's Ministry of Finance also banned government procurement of products from 46 U.S. companies, including major defense contractors like Lockheed Martin and Raytheon Missiles & Defense. This broader measure instructs central budget agencies and local fiscal authorities to exclude products from these companies from government purchases. These measures took effect immediately upon their announcement.
