As US expands ‘ban list’ for Chinese firms, Beijing warns against retaliation

Tensions between the world’s two largest tech economies flared once again this weekend as China expressed its “strong dissatisfaction” over a decision by the US to black-list several of its most prominent technology and automotive giants. Following an update to the US Pentagon’s list of entities allegedly aiding the Chinese military, Beijing's commerce ministry issued a stern warning, sating that if Chinese firms are not treated fairly on the global stage, Beijing will “inevitably retaliate resolutely and forcefully”. According to a report by news agency Reuters, the Ministry urged Washington to “immediately stop its erroneous practices, immediately withdraw relevant measures, and return to the correct track of building a constructive, strategic, and stable China-US relationship.” Silicon Valley rivals and clean energy giants targeted The Department of War’s list targets a broad group of China’s premium industrial and technological sector. Washington views these firms as key drivers of Beijing’s military and industrial prowess. The updated blacklist features household names and critical global suppliers, including: Internet and technology: E-commerce titan Alibaba and top internet search provider Baidu. Electric vehicles: Major automakers BYD and NIO. Green energy: Trina Solar and JA Solar Technology, two of the largest solar panel manufacturers in the world. Under US federal law, the consequences for these blacklisted entities will be severe. Beginning in 2027, the Pentagon will be strictly prohibited from contracting directly with any firm on the list. Furthermore, defense agencies will be blocked from purchasing any of their products or services through third-party vendors, which means that they will be cut from a stream of American government spending. Last week, a Federal Register notice was published, saying: “The Deputy Secretary of Defense has determined that the following entities qualify for designation as "Chinese military companies,” are engaged in providing commercial services, manufacturing, producing, or exporting (as required by Section 1260H(g) (2)(B)(ii)), and operate directly or indirectly in the United States (as required by Section 1260H(a)) in accordance with section 1260H." The latest additions to the list include sectors ranging from artificial intelligence (AI) and electric vehicles to robotics and biotechnology, including Alibaba Group, Baidu, BYD, WuXi AppTec, RoboSense and Unitree Robotics. Chinese memory-chip makers ChangXin Memory Technologies (CXMT) and Yangtze Memory Technologies Co (YMTC) were also added. The pair had been briefly removed from the list in February. The update follows the addition of Tencent Holdings and battery giant CATL in January last year.