Pentagon’s ‘Military Companies’ List: China Condemns US Action

Pentagon Targets Key Chinese Firms

The Pentagon has added major Chinese tech firms, including Alibaba, Baidu, and electric vehicle maker BYD, to its Section 1260H list of alleged ‘Chinese military companies.’ This move has triggered strong condemnation from China, which views it as groundless suppression.

Beijing Condemns “Baseless Suppression”

A China Daily editorial criticized the designation, arguing it severely infringes upon the legitimate rights and interests of these enterprises. The list primarily aims to restrict Pentagon procurement and serves as a warning to investors.

• China’s Ministry of Commerce spokesperson stated the US has disregarded consensus from high-level meetings.
• The US is accused of continuously broadening ‘national security’ to unjustifiably suppress Chinese companies.

Expanding Scope and Decoupling Strategy

The Pentagon’s list now extends beyond traditional defense to critical sectors like semiconductors, artificial intelligence, cloud computing, batteries, robotics, and advanced manufacturing. This blurring of lines suggests the US relies on sanctions due to concerns about losing technological competitiveness.

The action is interpreted as part of a wider US strategy to ‘decouple’ from China’s supply chains and undermine its high-tech capabilities. This approach is forcing the creation of parallel technological systems, disrupting global economic order and supply chains.

China Warns of Countermeasures

China warns that such actions risk trapping bilateral economic relations in a self-reinforcing cycle of ‘security threats’ and retaliatory measures. It has urged the US to halt these erroneous practices and revoke the relevant measures.

Beijing demands fair and non-discriminatory treatment for Chinese companies. Failure to comply, the spokesperson added, would lead to resolute countermeasures from China, with all consequences borne by the US.