China announced on Monday that it will add 10 American firms to its export control list, including two rare earth firms, according to a statement from its Ministry of Commerce.

Meanwhile, the Chinese Ministry of Finance also released a statement saying it would restrict 46 US firms from government procurement.

The 10 firms include Aveox, Red Cat Holdings, Teal Drones, Jaia Robotics, Ball Aerospace & Technologies, MP Materials and USA Rare Earth.

Specifically, export operators are prohibited from shipping dual-use items to the 10 firms. Organisations and individuals from any country or region are also prohibited from transferring or providing any dual-use item that originated in China to these businesses.

The notice mandated that any export currently under way that falls under the law must be stopped immediately.