New Delhi, June 22 -- China on Monday announced sanctions on 10 American military-related companies in response to a recent U.S. move that bars some leading Chinese tech companies from defense contracts.

The Commerce Ministry said that Chinese companies would be blocked from exporting "dual-use" items to the 10 companies, which include military drone makers and some involved in rare earth mining. Dual use refers to goods that can have military as well as non-military applications.

The ministry said the export ban was both to safeguard China's national security and in response to what it called the U.S. government's "wrongful expansion of its so-called List of Chinese Military Companies."

George Chen, partner for Greater China at the ad...