China Warns of Retaliation Over Pentagon Military Business List

Beijing warned the US on Saturday to back off a new list that lumps some of China's biggest brands in with its military. China's Commerce Ministry blasted the Pentagon's move to tag companies including Alibaba, Baidu, and electric-vehicle maker BYD as "Chinese military companies operating in the United States," calling it an abuse of state power that violates the spirit of last month's meeting of Presidents Trump and Xi Jinping in Beijing. The ministry's statement said "resolute and forceful" retaliation will follow unless the company names are removed, Politico reports.

The designation doesn't block the companies from doing business in the US, but it cuts them off from Pentagon contracts and adds to political pressure as Western intelligence agencies sound alarms over Chinese espionage, including alleged recruitment through LinkedIn and other job sites. In addition to major tech companies, the list includes the world's largest solar panel makers, per Reuters: Trina Solar and JA Solar Technology. The ministry statement said the Pentagon's action "ignored the consensus" reached by Trump and Xi. The dispute could further complicate efforts to repair trade ties after last year's tariff war, per Politico, even as Trump courts Chinese purchases of US goods and prepares to host Xi in Washington in September.