China imposed export restrictions on 10 US companies, including two rare-earths firms backed by Washington, marking the latest escalation in recent Sino-American trade tensions.

Under the new rules, Chinese firms will be barred from providing them with dual-use equipment that could be used for military ends.

Rare earths have become a major flash point in relations between Beijing and Washington, after China briefly imposed restrictions last year on US-bound exports in response to President Donald Trump’s tariffs.

The tensions, which have sent a shudder across many American industries, have prompted Washington to seek new sources of rare earths. But experts warn that reducing US reliance on China, which dominates the industry, could take years.