Beijing condemned the updated Section 1260H designation and also rolled out stricter financial data rules, adding pressure across corporate, technology and compliance fronts.
China has warned it may take “resolute and forceful countermeasures” after the Pentagon added major Chinese companies including Alibaba, Baidu, BYD and NIO to its Section 1260H list of firms linked to Beijing’s military. Beijing said it was deeply unhappy with the move, urged Washington to reverse it, and argued the United States was overstretching national security concerns to pressure Chinese businesses. The updated list also included Trina Solar and JA Solar Technology. Separately, Chinese regulators announced tighter rules for financial information services, requiring companies to classify data into four categories based on value, sensitivity and potential harm from leaks. The measures, issued by the Cyberspace Administration of China and six other agencies including the People’s Bank of China, deepen compliance obligations as U.S.-China tensions widen across technology, data, energy and manufacturing.