The Pentagon’s expanded blacklist exposes the Chinese regime’s military ambitions, and will likely deal a blow to the People’s Liberation Army (PLA), experts say.
The U.S. War Department released an updated roster of “Chinese military companies” on June 8, identifying Chinese firms linked to the regime’s armed forces.
The list names some of China’s top technology and industrial companies, including e-commerce giant Alibaba, search engine Baidu, and automakers BYD and NIO.
Also named are biotech firm WuXi AppTec, artificial intelligence robotics developer RoboSense Technology, and leading solar panel makers Trina Solar and JA Solar Technology.
The list carries no formal sanctions, but new regulations will bar the Pentagon from awarding contracts to the listed firms starting in June and from sourcing their products or services through third parties beginning in 2027.
WuXi AppTec filed a lawsuit against the Pentagon in a Washington federal court on June 11, calling its listing “erroneous” and seeking removal, according to a notice on the company’s website.
In official statements, Baidu claimed that its placement on the list was “without justification,” while BYD insisted that it was considering legal action.
First mandated by the U.S. Congress in 2021, the roster has grown to 188 entities, up from about 130 in 2025.
Targeting the PLA
Yeh Yao-Yuan, a professor of international studies at the University of St. Thomas in Houston, said the Pentagon’s updated list exposes how these companies serve the Chinese regime’s armed ambitions.
“This is Washington’s strike against Beijing’s ’military-civil fusion'—a strategy that compels civilian technologies to serve military purposes,” Yeh told The Epoch Times.
“Without this action, the United States would be handing its most advanced technology to the adversary.”
Max Tsung-chi Yu, former dean of the Political Warfare College at Taiwan’s National Defense University, said Beijing has long used commercial firms as cover to siphon military intelligence, posing a direct threat to U.S. national security.
“China has spent years infiltrating the West through various channels, making this blacklist an absolute necessity,” Yu told The Epoch Times.
“This makes clear where the U.S. military stands on these companies, and the ripple effects will be felt worldwide.”
Yu said the designations could deal a crippling blow to China’s military.
“Disrupting military-civil fusion strips the PLA of its ability to expand rapidly and stalls its modernization drive,” he said.
Stark Warning
Yeh said the move amounts to a stark warning to the international community.
“Foreign firms may think they are partnering with private Chinese companies, but these companies are deeply tied to Beijing,” he said.
“This effectively hands proprietary tech to the PLA and gives it free rein to deploy that technology in military operations.”
Yu warned that deepening commercial ties and civilian exchanges serve as conduits for the Chinese regime’s covert infiltration.
“As China floods foreign markets with cheap electric vehicles, lithium batteries, and solar panels, every country should remain vigilant,” he said.
“Furthermore, Germany’s heavy reliance on the Chinese market has been followed by a steady stream of espionage cases.”
German police arrested a married couple in Munich in May, charging them with spying for China and collecting technology for military use.
Yu said the blacklist will further erode Beijing’s economic appeal on the global stage.
“The Chinese economy is already grappling with a bleak outlook and slumping domestic consumption,” he said.
“If the U.S. and Western firms sever commercial ties with these military-linked entities, China’s export-reliant economy will take a catastrophic hit.”
Straining Ties
The Chinese Ministry of Commerce claimed on June 13 that the United States “severely harmed” the legitimate rights and interests of Chinese enterprises, and said it will take “strong countermeasures” if such practices do not stop immediately.
Yu said the Chinese regime’s punitive actions could involve targeted sanctions against U.S. firms or suspending trade arrangements.
“Both sides reached a flurry of commercial commitments following the [summit between U.S. President Donald Trump and Chinese leader Xi Jinping] in Beijing in May,” Yu said.
“Those deals now face the risk of being postponed or scrapped entirely, such as Beijing’s pledge to purchase 200 Boeing jets.”
But Yeh said Beijing’s retaliation would likely have limited impact.
“China’s anticipated pushback would inflict negligible damage on Washington,” he said.
“It could even embolden the U.S. to adopt a far more decisive posture on bilateral trade and cooperation.”
Yu said a spiraling trade conflict threatens to ignite broader diplomatic friction.
“While Beijing has always leveraged commercial terms as bargaining chips, a shift toward geopolitical tit-for-tat would further destabilize bilateral ties,” he said.
“Xi agreed to visit Washington in September, but any resulting fallout could throw that trip into doubt.”
Yeh said taking an increasingly hardline stance against the United States will only backfire on the Chinese regime itself by inviting a devastating conflict.
“Beijing’s heavy-handed tactics could risk dragging a new U.S.–China cold war into an actual hot war,” he said.
