China vows retaliation after Pentagon blacklists Alibaba, Baidu, and BYD

China has warned the United States that it may hit back after the Pentagon added major Chinese companies to a list tied to Beijing’s military. The names include Alibaba (NYSE: BABA; HKEX: 9988), Baidu (NASDAQ: BIDU; HKEX: 9888), BYD (HKEX: 1211; SZSE: 002594), and NIO (NYSE: NIO; HKEX: 9866).

Beijing said it was deeply unhappy with the decision and told Washington to cancel it. The updated list also includes Trina Solar (SSE: 688599) and JA Solar Technology (SZSE: 002459), two major solar panel makers.

Cryptopolitan had reported earlier this week that the Pentagon released the update just as the two countries kept tightening controls on technology, data, energy, and manufacturing.

Beijing tells Washington to remove the companies and stop using security rules against Chinese firms

The Ministry of Commerce of China announced on Saturday that America went beyond its limits in terms of national security concerns, as well as exerted governmental influence to pressurize the business of China.

The ministry demanded withdrawal of such decisions. It also asked Washington to deal with Chinese companies in a fair manner and build a stable relationship with China.

Its warning was direct: “Otherwise, China will take resolute and forceful countermeasures, and the consequences and responsibility arising therefrom will rest entirely with the US side.”

The Chinese embassy in Washington rejected the blacklist. Spokesman Liu Pengyu said firms from China follow the laws of the countries where they operate.

“The US should stop its wrong practice and create a fair, just and non-discriminatory environment,” Liu said.

The Pentagon list is known as the Section 1260H list. US law requires the Defense Department to update it yearly through 2030. A company can ask the Pentagon to review its case and submit evidence to challenge the label.

Alibaba said there was “no basis” for adding the company.

Being named on the 1260H list does not automatically ban exports or stop a company from serving American customers. The US Commerce Department runs a separate Entity List, and that list can block or limit access to American technology.

The 1260H list is one of several tools Washington uses as the US and China separate in sensitive sectors.

China tightens financial data rules as pressure from Washington spreads across major industries

On Saturday, Chinese regulators announced stricter rules for financial information services. The Cyberspace Administration of China said companies must sort data into four groups: core, important, sensitive general, and routine general.

Officials said each category would depend on its value, sensitivity, and the damage a leak could cause. Six other agencies issued the rules, including the People’s Bank of China.

The rules are part of Beijing’s data security system. China passed broad laws before adding sector rules.

“Financial information services are developing in an orderly manner, and the volume of data is expanding … which urgently requires standardised, classified and graded management,” the guidelines said.

The new rules do not cover state secrets or military information.

The dispute also sits inside US policy under Trump. After winning the November 2024 election, Trump chose Marco Rubio as Secretary of State and Mike Waltz as National Security Advisor.

Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis, said the choices showed that Trump planned to put China at the center of his foreign policy.

Before Trump’s January 2025 inauguration, Vice President JD Vance and Elon Musk met separately with Chinese Vice President Han Zheng in Washington.

Han attended as Xi Jinping’s special representative. His visit showed Beijing wanted working ties with the new US administration even as both sides added more pressure in trade, technology, security, and industry.

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