China threatens US over blacklist of leading tech firms
What's the story
China has expressed strong dissatisfaction with the US Defense Department's recent decision to add several major Chinese companies to its blacklist. The list includes leading tech firms such as Alibaba, Baidu, and automakers BYD and NIO. The move is seen as part of Washington's broader security concerns amid rising geopolitical tensions between the two countries.
Retaliation threats
If Chinese firms not treated fairly, Beijing will retaliate: Ministry
In response to the US's decision, China's commerce ministry has issued a statement expressing its strong dissatisfaction and firm opposition. The ministry urged the US to stop its "erroneous practices," withdraw relevant measures, and return to a path of building a constructive strategic and stable China-US relationship. It also warned that if Chinese firms are not treated fairly, Beijing will retaliate "inevitably, resolutely and forcefully."
Contract restrictions
Major blow to China's tech industry
The Pentagon's updated blacklist replaces an earlier version from early 2025. The new list prohibits the Defense Department from directly contracting with companies on it or purchasing their products/services through third parties from 2027. This move is seen as a major blow to China's tech industry, given that many of these companies are key players in their respective fields.
Trade truce
US-China trade relations remain complex
The Pentagon's decision comes a month after Presidents Donald Trump and Xi Jinping met in Beijing and agreed to maintain a fragile trade-war truce. However, China's commerce ministry said the Pentagon's move "ignored the consensus" reached between the two leaders. The latest developments indicate that US-China trade relations remain complex and fraught with challenges, despite efforts at diplomacy.