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China Vows Retaliation after US Blacklists Companies

Flags of US and China are displayed at American International Chamber of Commerce (AICC)'s booth during China International Fair for Trade in Services in Beijing, China, May 28, 2019. (Reuters)
Flags of US and China are displayed at American International Chamber of Commerce (AICC)'s booth during China International Fair for Trade in Services in Beijing, China, May 28, 2019. (Reuters)
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China Vows Retaliation after US Blacklists Companies

Flags of US and China are displayed at American International Chamber of Commerce (AICC)'s booth during China International Fair for Trade in Services in Beijing, China, May 28, 2019. (Reuters)
Flags of US and China are displayed at American International Chamber of Commerce (AICC)'s booth during China International Fair for Trade in Services in Beijing, China, May 28, 2019. (Reuters)

China on Sunday said it will take “necessary measures” to respond to the US blacklisting of Chinese companies over their alleged role in abuses of Uyghur people and other Muslim ethnic minorities.

The Commerce Ministry said the US move constituted an “unreasonable suppression of Chinese enterprises and a serious breach of international economic and trade rules,” reported the Associated Press.

China will “take necessary measures to firmly safeguard Chinese companies’ legitimate rights and interests,” the ministry's statement said.

No details were given, but China has denied allegations of arbitrary detention and forced labor in the far western region of Xinjiang and increasingly responded to sanctions against companies and officials with its own bans on visas and financial links.

The US Commerce Department said in a statement Friday that the electronics and technology firms and other businesses helped enable “Beijing’s campaign of repression, mass detention and high-technology surveillance” against Muslim minorities in Xinjiang.

The penalties prohibit Americans from selling equipment or other goods to the firms. The United States has stepped up financial and trade penalties over China’s treatment of Uyghurs and other Muslim minorities, along with its crackdown on democracy in the semi-autonomous city of Hong Kong.

The Chinese government since 2017 has detained a million or more people in Xinjiang. Critics accuse China of operating forced labor camps and carrying out torture and coerced sterilization as it allegedly seeks to assimilate Muslim ethnic minority groups.

The US Commerce Department said 14 companies were added to its Entity List over their dealings in Xinjiang, and another five for aiding China's armed forces.

“The Department of Commerce remains firmly committed to taking strong, decisive action to target entities that are enabling human rights abuses in Xinjiang or that use US technology to fuel China’s destabilizing military modernization efforts," Commerce Secretary Gina Raimondo said in a statement posted on the department's website.

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Macron to Raise Defense Targets, Citing Russia Threat

French President Emmanuel Macron looks on before a meeting with New Caledonia's elected officials and state representatives at the Elysee Palace in Paris, France, 12 July 2025. EPA/TOM NICHOLSON / POOL MAXPPP OUT
French President Emmanuel Macron looks on before a meeting with New Caledonia's elected officials and state representatives at the Elysee Palace in Paris, France, 12 July 2025. EPA/TOM NICHOLSON / POOL MAXPPP OUT
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Macron to Raise Defense Targets, Citing Russia Threat

French President Emmanuel Macron looks on before a meeting with New Caledonia's elected officials and state representatives at the Elysee Palace in Paris, France, 12 July 2025. EPA/TOM NICHOLSON / POOL MAXPPP OUT
French President Emmanuel Macron looks on before a meeting with New Caledonia's elected officials and state representatives at the Elysee Palace in Paris, France, 12 July 2025. EPA/TOM NICHOLSON / POOL MAXPPP OUT

President Emmanuel Macron on Sunday called for a massive boost to France's defense spending, saying freedom in Europe was facing a greater threat than at any time since the end of World War II.

"We are living a pivotal moment," Macron said in a speech to the armed forces on the eve of the national Bastille Day holiday, denouncing "imperialist policies", "annexing powers" and the notion that "might is right", all a reference to Russia, AFP said.

"Never has peace on our continent depended to such an extent on the decisions that we take now," said Macron.

France faced the challenge "of remaining free and masters of our destiny", he added.

Macron said France's defense budget should rise by 3.5 billion euros ($4.1 billion) in 2026, and then by a further three billion euros in 2027.

'Present at their battle stations'

"If you want to be feared, you must be powerful," he said, calling for "mobilization" for national defense by all government departments.

"Everyone must be present at their battle stations," Macron said.

"We are still ahead, but if we remain at the same speed we will be overtaken tomorrow," he added.

French military and security officials have been warning of global threats weighing on France, with Defense Chief of Staff Chief Thierry Burkhard saying on Friday that Russia posed a "durable" threat to Europe and that the "rank of European countries in tomorrow's world" was being decided in Ukraine, invaded by Russia in 2022.

Russia currently views France as its "main adversary in Europe", Burkhard said.

He also warned of the consequences of a diminished US commitment to Europe, along with cyber threats, disinformation campaigns and the risk of terror attacks.

"We have to take account of the fact that there has been a change in strategic parameters," he said.

On Sunday, Defense Minister Sebastien Lecornu weighed in, telling the La Tribune weekly newspaper that "it's our job to provide answers".

France needed to make "a new effort" if it wanted to "depend on nobody" in the future, the minister said.

France's defense budget has already increased sharply since Macron took power, rising from 32.2 billion euros ($37.6 billion at current rates) in 2017 to 50.5 billion currently, and is projected to reach 67 billion euros in 2030.

'Sacrosanct' defense budget

If confirmed, the major defense spending boost could, however, threaten French efforts to cut deficits and reduce its debt mountain, amid pressure from the EU Commission on Paris to impose more fiscal discipline.

The servicing of France's debt alone will cost the Treasury 62 billion euros this year.

But Prime Minister Francois Bayrou, who on Tuesday is to outline his budget plan for 2026, has declared the defense budget to be "sacrosanct" and exempt from budgetary cuts.

In Sunday's speech, Macron rejected any financing of the additional defense spending through additional debt.

Several NATO countries are boosting their military spending, after the alliance's members agreed last month to spend five percent of their gross domestic product (GDP) on security.

Britain aims to increase its defense budget to 2.5 percent of GDP by 2027, and to 3.0 percent after 2029. Germany plans to reach a defense budget of 162 billion euros by 2029, equivalent to 3.5 percent of its GDP, while Poland already dedicates 4.7 percent of GDP to defense.

"Very clearly, we need to revise our programming and strategy today, in light of the changing nature of risks," Macron said on Thursday.

Lecornu this month detailed the most urgent needs for the French armed forces, including ground-to-air defenses, ammunition, electronic warfare and space capabilities.

In Sunday's interview, he said France was mostly worried about falling behind in "disruptive technologies" including artificial intelligence and quantum technology.

Beyond budget increases, the French government is also seeking to boost "national cohesion" in the face of global crises, Elysee officials said.

Macron is expected to outline a potential mobilization drive for young people who should be given "an opportunity to serve", Elysee officials said.