UPDATE 1-China targets US rare earth and other firms with export controls

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Recasts and writes through

- China has added what it said were 10 U.S. entities linked to the U.S. military on its export control list in retaliation for Washington placing a number of Chinese firms on its list this month.

Aveox, a specialised motor manufacturer for mission-critical applications, as well as rare earth producers MP Materials MP.N and USA Rare Earth USAR.O were among companies placed on the list, which prohibits Chinese exporters from selling dual-use items to them.

The measures are a response to the "U.S. government's malicious practice" and were taken to safeguard national security and interests, as well as to fulfill international obligations such as non-proliferation, China's Commerce Ministry said in a statement on Monday.

Any ongoing export activities with those companies should be stopped immediately, it said.

In a separate notice, China's finance ministry said it has also decided to take measures against 46 U.S. companies. Chinese buyers are now barred from procuring any products manufactured by them, though U.S.-funded enterprises operating in China can still do so.

Two weeks ago, the United States added Chinese e-commerce giant Alibaba 9988.HK, internet search provider Baidu 9888.HK, and automakers BYD 002594.SZ and ​NIO 9866.HK to a list of companies it believes are aiding Beijing's military.