US adds Chinese tech firms to Pentagon military list, China vows retaliation

The U.S. Department of Defense updated its Section 1260H “Chinese military companies” list, adding major Chinese firms including electric‑vehicle maker BYD, e‑commerce giant Alibaba, search engine Baidu, EV maker NIO and solar panel producers Trina Solar and JA Solar. Inclusion bars the Pentagon from awarding defense contracts to these firms and restricts procurement through third parties after 2027.

China’s Ministry of Commerce and Foreign Ministry condemned the move as a breach of the consensus reached at the May summit between President Donald Trump and President Xi Jinping. Beijing called the action “deeply unsatisfactory,” demanded an immediate reversal and warned of “strong and resolute counter‑measures” if the list is not withdrawn. The Chinese government said the measure harms global supply‑chain stability and violates fair‑trade principles.

The listed companies rejected the accusations, stating they have no military‑civil fusion ties and will pursue legal challenges. Analysts note the designation could disrupt automotive and technology supply chains, affect U.S. defense procurement, and heighten broader U.S.–China strategic competition.