China has criticised a new Pentagon move targeting some of its most prominent companies, warning that Washington risks further damaging an already fragile relationship between the world’s two largest economies.
The U.S. Department of Defence has updated its list of companies it says are linked to China’s military, adding several major names from the technology, electric vehicle, and renewable energy sectors. The latest roster includes Alibaba, Baidu, BYD, NIO, Trina Solar, and JA Solar Technology, placing some of China’s best-known corporate groups under renewed scrutiny from Washington.
The list is part of a wider U.S. effort to limit the role of companies it believes could support China’s military modernisation or benefit from close ties to Beijing’s defence sector. While inclusion does not automatically trigger immediate sanctions, it can still create serious commercial pressure by discouraging business partners, investors, and government agencies from dealing with named firms.
China’s commerce ministry rejected the move and accused the U.S. of using national security concerns as a way to suppress Chinese businesses.
“China is strongly dissatisfied and firmly opposes this,” the ministry said in a statement. “China urges the U.S. to immediately stop its erroneous practices, immediately withdraw relevant measures and return to the correct track of building a constructive strategic and stable China-U.S. relationship.”
The dispute comes shortly after President Donald Trump and President Xi Jinping met in Beijing, where both sides sought to preserve a delicate pause in their wider trade conflict. Beijing said the Pentagon’s decision ran counter to the understanding reached by the two leaders and threatened to weaken efforts to stabilise ties.
The commerce ministry also warned that China would “inevitably retaliate resolutely and forcefully” if its companies were not treated fairly.
Under U.S. law, the Pentagon will eventually be barred from entering direct contracts with companies on the list. Restrictions on purchases made through third parties are also scheduled to take effect in 2027.
The latest update replaces an earlier version issued in 2025 and shows how disputes over technology, clean energy, electric vehicles, and national security continue to shape relations between Washington and Beijing.