China's Ministry of Commerce announced new trade restrictions on Thursday, targeting 28 U.S. companies in a move aimed at "safeguarding national security and interests." The measures, which ban the export of dual-use items-those with both civilian and military applications-to these firms, mark an escalation in the ongoing trade conflict between Washington and Beijing.

Among the companies added to China's export control list are U.S. defense contractors General Dynamics, Lockheed Martin, Boeing Defense, Space & Security, and Raytheon Missiles & Defense. Beijing also banned 10 additional companies from conducting any business within China, citing their involvement in arms sales to Taiwan. Executives of these firms face further restrictions, including bans on entering or residing in the country.

The export control measures come just weeks before President-elect Donald Trump is set to return to the White House. Trump has pledged to impose higher tariffs on Chinese goods and potentially renegotiate trade agreements. Analysts believe these developments signal a retaliatory stance from Beijing, following the Biden administration's restrictions on exports of advanced memory chips and chipmaking equipment to over 140 Chinese firms.

China's latest action also reflects its frustration with longstanding U.S. measures targeting Chinese technology companies. Last month, Beijing launched an anti-monopoly investigation into Nvidia, a U.S. microchip maker, further illustrating the tit-for-tat nature of the economic confrontation.

"Most of this is probably at the symbolic level because so many of these entities were already subject to sanctions," said Andrew Gilholm, a China expert at consulting firm Control Risks, speaking to The New York Times. "What we're seeing is the widening scope and number of entities being added in a single listing."

While the immediate economic impact on the targeted U.S. firms is expected to be limited due to existing restrictions, the broader implications are significant. Defense contractors like Lockheed Martin and General Dynamics rely on international supply chains for critical components, and any disruption could increase costs and delays.

The timing of China's measures is notable, as they coincide with rising tensions in the technology and defense sectors. The U.S. Department of Commerce recently added several Chinese firms to its Entity List, effectively banning them from accessing key U.S. technologies. Beijing's response, including the new export controls and restrictions on dual-use items, underscores the growing divide in global trade policies.

Goldman Sachs analysts suggested that while the Trump administration's expected trade measures might raise tariffs on Chinese imports, they are unlikely to pursue blanket tariffs. "We expect tariffs on imports from China and autos, but not a universal tariff, which would carry economic and political risks," the firm stated in a recent report.

The companies affected by Beijing's latest move include some of the largest U.S. defense and aerospace firms. General Dynamics, Lockheed Martin, and Raytheon, all of which are critical suppliers to the U.S. military, have not yet commented publicly on the restrictions. Boeing, which has substantial commercial interests in China, may feel additional pressure as the controls go into effect.