US Expands Sanctions List as China Warns of Retaliation

China has strongly criticized the United States' decision to add a number of major Chinese companies to a Pentagon list of firms said to be working with the Chinese military. Beijing's commerce ministry responded on Saturday that it was "strongly dissatisfied" with the move.

Some of China's best-known technology and industrial companies are on the updated US Department of Defense list, including Alibaba, Baidu, automakers BYD and NIO and solar panel makers Trina Solar and JA Solar Technology.

Washington says the listed firms are important to the development of China's military and industrial power. China's commerce ministry called on the US to immediately withdraw the relevant measures and return to building stable relations between the two countries.

Beijing also warned that it will take decisive countermeasures if Chinese businesses are not treated fairly.

The updated list replaced the version published in early 2025, about a month after Presidents Donald Trump and Xi Jinping met in Beijing, confirming the continuation of a fragile truce in the trade war.

Under US legislation, the Department of Defense will be prohibited from contracting directly with companies on the list from 2027 and will also be severely restricted from purchasing their products and services through third parties.

(reuters, max)