China Sanctions 10 U.S. Defense Firms in Retaliation

China on Monday imposed trade curbs and sanctions on at least 10 American military-linked companies, retaliating against a recent U.S. move that restricted dozens of Chinese tech firms from U.S. defense contracts. The Pentagon earlier this month expanded its so-called 1260H list, adding Chinese technology companies it believes have aided Beijing’s military. China’s countermeasures include export controls and procurement exclusions targeting the named U.S. firms.

The exchange marks another escalation in the technology-military trade war between the world’s two largest economies. The 1260H list designation bars listed Chinese companies from U.S. defense contracts, cutting off a significant revenue stream. China’s response means American defense-linked suppliers now face reciprocal export restrictions. U.S. firms with exposure to Chinese components or markets are carrying new supply chain risk.