Key facts
- China's commerce ministry is 'strongly dissatisfied' with the U.S. adding Chinese companies to the Pentagon's list of firms aiding China's military.
- The U.S. list includes major technology firms like Alibaba, Baidu, BYD, NIO, Trina Solar, and JA Solar Technology.
- China has urged the U.S. to withdraw the measures and warned of retaliation.
- The Pentagon's action restricts companies on the list from U.S. government contracts starting in 2027.
China's commerce ministry has stated it is "strongly dissatisfied" and "firmly opposes" a recent U.S. decision to add several major Chinese technology and automotive companies to the Pentagon's list of firms allegedly aiding Beijing's military. The U.S. Defense Department's update includes prominent names such as e-commerce giant Alibaba, internet search provider Baidu, automakers BYD and NIO, and solar panel makers Trina Solar and JA Solar Technology.
Beijing has urged the U.S. to immediately cease these "erroneous practices," withdraw the measures, and return to building a constructive strategic relationship. The ministry warned that if Chinese firms are not treated fairly, China will "inevitably retaliate resolutely and forcefully."
The Pentagon's updated list supersedes a previous one from early 2025 and follows a meeting between Presidents Donald Trump and Xi Jinping that established a temporary trade-war truce. China's commerce ministry indicated that the Pentagon's move "ignored the consensus" reached by the two leaders.
Under U.S. law, companies placed on this list will be prohibited from contracting directly with the Defense Department and restricted from having their products or services purchased through third parties starting in 2027.