China sanctioned 10 American military-linked companies on Monday. This move escalates trade tensions following the U.S. blacklisting of Chinese firms including Baidu and Alibaba.
The Chinese Commerce Ministry banned the export of dual-use items to the sanctioned U.S. entities. These goods serve both military and civilian applications.
China’s Finance Ministry will also block government agencies from purchasing products from 46 American companies. Baidu maintains that allegations of its military connections are totally baseless.