Economy June 13, 2026 12:39 AM

Beijing Protests U.S. Move to Label Major Chinese Firms as Tied to Military

Commerce ministry objects to Pentagon’s expanded list naming leading tech, EV and solar companies; Washington faces calls to reverse action

By Derek Hwang
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China's Commerce Ministry said it is "strongly dissatisfied" and "firmly opposes" a U.S. decision to add a group of major Chinese companies to a Pentagon list of firms the U.S. says support China's military. The revised list names prominent technology, electric vehicle and solar manufacturers, and Beijing warned it would respond if those firms are not treated fairly. Under U.S. law, companies on the list face contracting prohibitions and further restrictions slated to take effect in 2027.

Beijing Protests U.S. Move to Label Major Chinese Firms as Tied to Military
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Key Points

  • China's Commerce Ministry said it is "strongly dissatisfied" and "firmly opposes" the U.S. decision to add multiple Chinese firms to a Pentagon list alleging links to the military.
  • The updated Pentagon list names major technology, electric vehicle and solar companies, including Alibaba, Baidu, BYD, NIO, Trina Solar and JA Solar Technology.
  • Under U.S. law, the Defense Department is barred from contracting directly with firms on the list, and additional restrictions on purchases through third parties are scheduled to begin in 2027.

China's Commerce Ministry publicly rebuked a recent U.S. decision to place a number of large Chinese corporations on an updated Pentagon roster identifying firms that U.S. authorities say are linked to or support China’s military-industrial capabilities.


The ministry said in a statement that it was "strongly dissatisfied and firmly opposes this," and urged the United States to rescind the measures and return to what it called a constructive and stable bilateral relationship. The statement also warned that Beijing would take action if Chinese companies were not treated fairly.

The revised Pentagon list adds several of China’s best-known technology and industrial names, including Alibaba, Baidu, BYD and NIO. The Defense Department later included solar manufacturers Trina Solar and JA Solar Technology on the roster.


According to the Commerce Ministry, the update to the list undercuts an understanding reached about a month earlier when U.S. President Donald Trump and Chinese President Xi Jinping met in Beijing and maintained a fragile trade truce. The ministry said the latest U.S. action undermines the understanding reached during that meeting.

The Pentagon’s revised roster replaces a version published earlier in the year. The list is intended to identify companies that U.S. authorities believe are linked to China’s military or that support its military-industrial capabilities.

Under the applicable U.S. law cited in the announcement, the Defense Department is barred from entering into direct contracts with firms on the list. In addition, restrictions on purchasing goods and services from those companies through third parties are scheduled to take effect in 2027.


The inclusion of leading technology platforms, electric-vehicle manufacturers and solar producers in the Pentagon’s list underscores persistent tensions between Washington and Beijing over national security, technology leadership and industrial policy. The ministries and companies named were not further detailed in the Commerce Ministry statement released publicly.

The dispute puts a spotlight on how industrial and technology policy intersects with national security determinations and on the timeline for future procurement restrictions, which are set to tighten in 2027 under the current U.S. statutory framework.

Risks

  • Escalation in U.S.-China tensions could prompt retaliatory measures from Beijing if it concludes Chinese companies are not being treated fairly - this may affect technology, EV and solar sectors.
  • The prohibition on direct Defense Department contracts and planned 2027 restrictions could constrain commercial relationships and procurement channels for named firms in technology, electric vehicles and solar manufacturing.
  • The Commerce Ministry’s claim that the move undermines understandings reached between the two leaders highlights uncertainty in bilateral trade and industrial policy, which could influence investor sentiment in affected sectors.

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