China vows retaliation over Pentagon blacklisting of Alibaba, BYD and Baidu

China Slams US Pentagon Blacklist Adding Alibaba and Other Tech Giants

China’s Commerce Ministry on Saturday declared it is “strongly dissatisfied and firmly opposes” the U.S. Department of Defense’s decision to add major Chinese technology firms including Alibaba to the Pentagon’s list of companies deemed to be aiding China’s military, warning it will “inevitably retaliate resolutely and forcefully” if the firms are not treated fairly.presstv

The Blacklist Expansion

The Pentagon released its updated Section 1260H list on Monday, expanding the roster to 188 entities from 134 last year in what amounts to its largest-ever single expansion. Among the most prominent additions were e-commerce giant Alibaba, search and AI company Baidu, electric vehicle manufacturers BYD and NIO, pharmaceutical research firm WuXi AppTec, humanoid robotics startup Unitree, networking equipment maker TP-Link, and solar companies Trina Solar and JA Solar.npr

The Pentagon said the companies qualify as “Chinese military companies” because of their affiliations with the Ministry of Industry and Information Technology and the State-owned Assets Supervision and Administration Commission. Under legislation in the FY 2024 National Defense Authorization Act, the Defense Department will be prohibited from contracting directly with listed entities starting June 30, with restrictions on indirect procurement through third-party supply chains taking effect in June 2027.cnbc

Corporate Denials

Both Alibaba and Baidu rejected the designations. Alibaba stated, “There is no justification for placing Alibaba Group on the CMC List. We are neither a military company nor involved in any military-civil fusion strategy.” Baidu called the claims “completely unfounded,” adding that “the claim that Baidu operates as a military entity is entirely without merit.”france24

Beijing’s Response

China’s Commerce Ministry urged Washington to “immediately stop its erroneous practices” and “immediately withdraw relevant measures.” The ministry said Beijing would retaliate if Chinese firms are not treated fairly, though it did not specify what form such countermeasures would take.business-standard

The move adds to existing tensions between Washington and Beijing, coming less than a month after a meeting between Presidents Trump and Xi Jinping. Tencent Holdings, another Chinese AI champion, was previously added to the list in 2025 and has been seeking its removal. Companies on the list can petition the Pentagon for removal but remain subject to heightened scrutiny and reputational risks in the meantime.reuters