US blacklists Chinese solar, battery firms over alleged military links

The United States is on the collision course with China after a month when President Donald Trump met with Chinese President Xi Jinping in May and showed commitment to collaborate in various sectors.

In a recent development, the US has targeted the Chinese solar and battery firms and added into the blacklist over the alleged claims that these world’s largest manufacturers are aiding China’s military.

The recent crackdown comes in the form of expansion of Section 1260H list, referred to as the Chinese military company blacklist.

Washington added Trinasolar and JA Solar Technology, known for making the world’s largest solar panels. Moreover, the Pentagon also added several Chinese EV makers and technology companies to its list of “Chinese military companies,” including BYD, Nio, and CALB.

The list is also expanded by the inclusion of major Chinese companies such as Alibaba, Baidu, Tencent, and WuXi AppTec.

As per this section, the US Defence Department will not make any contract with those companies included in the list and it will be restricted from buying their products and services even through third parties effective from 2027.

But the blacklisting under Section 1260H does not impose complete commercial bans or sanctions on the Treasure Department. However, the designation will act as a warning to American investors, capital markets and institutions regarding potential business ties with Chinese businesses and companies.