China accuses US of power abuse with expanded blacklist of Chinese firms

China has added 10 US-based companies to its export control list and barred government procurement from 46 US firms, escalating tensions after the Pentagon expanded its blacklist of Chinese military-linked companies. The moves come as both Washington and Beijing trade what analysts describe as retaliatory measures in the bilateral relationship.

Lead

The Pentagon released an updated Section 1260H list, expanding the roster to 188 entities, up from 134 last year, according to the South China Morning Post. The list now includes major Chinese technology and industrial firms such as Alibaba, Baidu, BYD, and Nio, along with others like pharmaceutical company WuXi AppTec, robot maker Unitree, networking equipment provider TP-Link, solar panels manufacturers JA Solar Technology and Trina Solar, and battery producers CALB and EVE Energy.

In response, China's Ministry of Commerce issued an export ban on 10 US companies, prohibiting Chinese firms from exporting "dual-use" items – goods that can be used for civilian or military purposes – and ordered a halt to existing transactions. The ministry said the ban was implemented to "safeguard national security and interests and fulfill international obligations such as non-proliferation," according to Al Jazeera. The list of US companies includes rare-earth miner MP Materials, rare-earth magnet maker USA Rare Earths, and defense contractors.

While the Pentagon's blacklist was updated under Section 1260H of the 2021 National Defence Authorization Act, China separately barred government procurement from 46 US companies, including subsidiaries of Lockheed Martin, Boeing, and General Dynamics, neither Reuters nor the ministry named them. The US office of the Ministry of Finance later provided an exemption for US-funded, locally registered companies, as reported by Al Jazeera.

Coverage comparison

Al Jazeera, which first reported the export order and procurement ban, emphasized the retaliation against the Pentagon's blacklist, describing the moves as a "largely symbolic" act of retaliation. The news outlet also highlighted that the export ban applies to 10 companies and that Chinese sellers are prohibited from selling to them globally.

France 24's coverage focused on Beijing's official response, reporting that the foreign ministry spokesman Lin Jian urged Washington to "correct is erroneous practices" and expressed firm opposition to the blacklisting of Chinese companies. The French outlet also noted that the designations came after President Donald Trump met Chinese leader Xi Jinping, both nations trying to stabilize the relationship, with possible ongoing friction.

South China Morning Post provided comprehensive details of the Pentagon's list expansion, including the removal of 10 entities from a previous version. It saw the development as a threat to the bilateral relationship, adding that the announcement came weeks after the two leaders' summit and could fan tensions despite recent goodwill gestures.

Yonhap News incorporated the Pentagon's actions from the perspective of the US official, who, in response to China's sanctions, reaffirmed the Section 1260H list as a safeguard for supply chains. The official claimed Beijing's response only validated I write that Chinese suppliers are "unreliable," a statement that tapped into the idea of ongoing concerns in the defense supply security.

Key Claims

• Pentagon blacklist expansion: The Pentagon added nearly 80 new entities to its Section 1260H list, raising it from 134 to 188 claims, as reported by South China Morning Post and Yonhap News.
• American companies targeted: The updated list includes major Chinese technology giants, including Alibaba, Baidu, BYD, NIO, WuXi AppTec, Unitree, TP-Link, JA Solar, Trina Solar, and five other firms, as reported by South China Morning Post, France 24 — English, and Yonhap News.
• Removal of some entities: The Pentagon also removed 10 companies from the previous version of the list issued in January 2025, including CNOOC subsidiaries and Cosco Shipping Finance, according to a South China Morning Post report.
• China's export ban: China's Ministry of Commerce announced an export ban on 10 US-based companies, including MP Materials and USA Rare Earths, with immediate suspension of shipments, as reported by Al Jazeera.
• Procurement ban: China's Ministry of Finance barred all Chinese government agencies from purchasing goods from 46 US companies, including Lockheed Martin, Boeing, and General Dynamics, as Al Jazeera and Yonhap’s separate reports confirmed.
• China's official criticism: China's foreign ministry spokesman Lin Jian described the Pentagon's move as "discriminatory" and, added that Beijing "firmly opposes" the US overstretching the concept of national security, as reported by France 24 — English and South China Morning Post.
• Commerce Ministry statement: China's Ministry of Commerce accused Washington of "continuously overstretching the concept of national security" and using state power to suppress Chinese companies, according to a South China Morning Post article.
• US defense: A US official stated the Pentagon's Section 126 procurement restrictions help ensure secure and reliable supply chains for the U.S. military, and told Yonhap News that Beijing's response “only validates” Pentagon actions.
• Two chipmakers reinstated: France 24 reported that two memory chipmakers, ChangXin Memory Technologies and Yangtze Memory Technologies, were re-added to the list after a brief removal in a previous draft.

Perspectives

Chinese government: Beijing has characterized the Pentagon's expanded blacklist as discriminatory and wasteful misuse of national security rhetoric. In addition to the export ban and procurement curbs, the official response from the foreign ministry and Ministry of Commerce, both described the US actions as unreasonable and damaging to both international trade and the legitimate rights of Chinese firms. In series of statements, they reiterated a sharp of what they regard as US overreach.

Alibaba: In response to its inclusion on the list, Alibaba declared that it "theres no basis to conclude that Alibaba should be placed on the Section 1260H List" in a statement cited by the South China Morning Post. Alibaba, which owns the same outlet, thus joined other companies in placing a questioned the Pentagon's determination.