The United States Department of Defense has expanded its list of “Chinese military companies” (CMC) to include several prominent solar and battery manufacturers. Under Section 1260H of the National Defense Authorization Act, the Pentagon identified 188 entities, including JA Solar, Trinasolar, CATL, BYD, and EVE Energy. These firms are accused of participating in military-civil fusion strategies, which leverage civilian technological innovation to bolster China’s defense industrial base. While the designation currently carries significant reputational risks, upcoming procurement prohibitions will eventually restrict the U.S. military from contracting with these companies or purchasing their products through third parties by 2027.
The updated roster reflects a broader effort by the U.S. government to address perceived national security risks across strategic sectors, including electric vehicles, semiconductors, and telecommunications. JA Solar and Trinasolar were specifically flagged for allegedly receiving state assistance linked to China’s military-industrial planning. Both companies previously held manufacturing operations in the United States but have since divested their assets, with JA Solar selling its solar module factory to Corning and Trinasolar offloading its facility to T1 Energy.
Battery and energy storage leaders, including CATL, BYD, and EVE Energy, were also added to the list due to their reported affiliations with the Chinese Ministry of Industry and Information Technology and the State-Owned Assets Supervision and Administration Commission. BYD was further noted for its involvement in military-civil fusion enterprise zones. Other notable additions include the battery manufacturer CALB Group and the technology firm Huawei.
Legal experts suggest that while the immediate impact of the CMC designation is primarily reputational, it creates a complex environment for U.S. companies. Businesses engaging with these entities must navigate potential procurement bans and the risk of facing retaliatory measures under Chinese law. The U.S. Department of Defense indicated that further updates to the list remain possible as it continues to monitor these entities.
In response to the announcement, the Chinese Foreign Ministry expressed strong opposition to the move. Spokesperson Lin Jian criticized the U.S. for overgeneralizing national security concepts and suppressing Chinese enterprises. He urged the U.S. to abandon these practices, stating that China would take the necessary steps to protect the legitimate rights and interests of its companies.