China threatens US with retaliation over inclusion of Alibaba, BYD, and others on Pentagon blacklist

China's Ministry of Commerce said on Saturday that China is "extremely dissatisfied" with the U.S. actions regarding the addition of several major Chinese companies to the Pentagon's list of firms it says are aiding the Chinese military, UNN reports, citing Reuters.

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The PRC Ministry of Foreign Affairs also expressed concern over the U.S. Department of Defense's long-awaited update to the list on Monday, which included leading tech companies such as e-commerce giant Alibaba, internet search provider Baidu, and automakers BYD and NIO.

The list also includes the world's largest solar panel manufacturers: Trina Solar and JA Solar Technology.

The list includes a wide range of leading Chinese tech firms that are key to the development of Beijing's military and industrial prowess, reflecting Washington's security concerns amid intense geopolitical competition between the countries.

"China is strongly dissatisfied and resolutely opposes this. China calls on the U.S. to immediately stop its erroneous practices, immediately cancel the relevant measures, and return to the correct path of building constructive strategic and stable China-U.S. relations," the PRC Ministry of Commerce said in a statement.

If Chinese firms are not treated fairly, the statement said, Beijing will "inevitably take decisive and tough countermeasures."

The Pentagon update replaces the list from early 2025 and comes a month after the leaders of both countries, Donald Trump and Xi Jinping, held a meeting in Beijing where a fragile truce in the trade war was reaffirmed, the publication notes.

The ministry's statement said the Pentagon's move "ignored the consensus" reached between the two leaders.

Under U.S. law, the Department of Defense will be prohibited from entering into direct contracts with companies on the list and restricted from purchasing their products or services through third parties starting in 2027.

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