As the United States and China extended their tariff war ceasefire for 90 days on the 12th, the Chinese government decided to stop export control measures targeting American defense companies that were announced in April. On this day, China's Ministry of Commerce revealed through a statement from its Spokesperson that it would stop export controls on dual-use goods for 12 American corporations announced on April 9. This measure will take effect immediately.
China's Ministry of Commerce also decided to grant an additional 90-day extension of export controls on 16 American corporations, which were stopped under the U.S.-China ceasefire agreement in May after being announced on April 4. It added that it will also suspend sanctions that included 17 American corporations on the 'unreliable corporate list' on April 4 and 9. Should they apply for transactions with these corporations, Chinese corporations will review whether conditions are met before granting approval.
This action follows the agreement reached last month where the U.S. and China decided to extend the tariff ceasefire for an additional 90 days, as stated in the joint declaration. The joint declaration specified that non-tariff retaliatory measures would be suspended or abolished.
Since February, China applied the same tariff rates in 'reciprocal response' against the universal tariff imposed by the Trump administration on China and the additional high tariff of 34% in April, and has executed export controls on essential materials for advanced industries, along with sanctions against American corporations.
The ministry controlled the export of dual-use goods targeting 16 American defense companies, including Hypoint Aerotech, and logistics firm Universal Logistics Holdings on April 4, and on the 9th added another 12 defense firms, including American Photonics, Novotek, and Echodyne, to the list of export controls. At the same time, it included 17 military suppliers in the 'unreliable corporate list' for selling weapons to Taiwan and banned transactions and investments with China.
However, the announcement did not specify concrete details such as whether there would be a blockade on the supply of rare metals and minerals to military companies. The Wall Street Journal reported that China resumed rare earth exports after the second U.S.-China trade agreement, but noted that the ban on military exports of dual-use minerals, including gallium, germanium, antimony, and graphite, remains in effect.