China blocks US rare earths, defense exports in tit-for-tat trade spat

China imposed export controls on 10 US companies including aerospace firm Aveox, vehicle maker Oshkosh Defense, and rare earths producers MP Materials and USA Rare Earth, prohibiting dual-use item exports effective Monday. Simultaneously, China banned 46 US firms like Lockheed Martin and Raytheon from government procurement, following US blacklisting of 80 Chinese companies including Alibaba, Baidu and BYD announced this month.

This escalation disrupts global supply chains for critical minerals and defense tech. Nigeria, which relies on imports for electronics manufacturing and has defense partnerships with both powers, may face component shortages or pressure to choose sides in the tech war. The rare earths controls particularly affect Nigeria's growing tech sector dependent on Chinese-manufactured components.

With measures effective immediately, Nigerian importers should verify supplier compliance for electronics and defense goods. Long-term, Nigeria could leverage its own rare earths reserves (found in Plateau and Bauchi states) to fill supply gaps. Will this push Nigeria to accelerate local rare earths processing or deepen ties with alternative tech partners?

SOURCE: https://www.channelstv.com/2026/06/22/china-sanctions-10-us-firms-over-pentagon-blacklist/