China imposed export controls on 10 U.S. companies involved in defence and rare earths mining in response to Washington's blacklist, and banned public procurement from dozens more firms, Beijing said on June 22.
The move comes a month after U.S. President Donald Trump visited Beijing, seeking to stabilise fraught relations during talks with Chinese counterpart Xi Jinping.
However, Washington later released a new blacklist of 80 companies and their subsidiaries it said were aiding the Chinese military, prompting Beijing to threaten retaliation.
China's new export controls come "in response to the U.S. government's egregious act of adding to its so-called 'Chinese military enterprise list'", the commerce ministry said in a statement, adding the move was also to "safeguard national security".
The 10 entities include Aveox, which holds aerospace defence contracts with the U.S. military, and Oshkosh Defense, which produces military vehicle fleets.
China's finance ministry simultaneously announced a ban on agencies involved in public procurement from buying products made by 46 U.S. firms, including Lockheed Martin, Raytheon and Boeing's defence division.
Companies with U.S. investments in China are excluded, according to a statement from the finance ministry, which said measures would take effect from Monday.
The U.S. blacklist saw tech giants Alibaba and Baidu added, as well as electric vehicle giant BYD.