China Rejects US Sanctions on Research Institutions

China’s Ministry of Commerce (MOFCOM) has expressed strong dissatisfaction and firm opposition to the US Department of War’s decision to add dozens of Chinese research institutions, including two of the country’s most prestigious civilian universities, to a federal research-security blacklist. In a statement released on July 29, a MOFCOM spokesperson warned that the move politicizes scientific cooperation and runs counter to the global trend of innovation collaboration, pledging that China will take “necessary measures” to protect its institutions.

Context

The dispute centers on the FY2025 update to the Section 1286 list, published by the US Department of War on July 23, 2026, which identifies 130 foreign academic and research institutions engaged in what the Pentagon describes as problematic activities related to unauthorized technology transfer. Of those, 88 are in mainland China — the largest single-cycle expansion since the list was created under the FY2019 National Defense Authorization Act.

For the first time, the Pentagon added two of China’s top civilian universities — Fudan University and Shanghai Jiao Tong University — to a list that had previously focused on institutions with direct ties to the People’s Liberation Army, particularly the “Seven Sons of National Defence.” According to TechTimes, the expansion signals a widening of Washington’s research-security perimeter beyond military-linked academies.

The South China Morning Post noted the additions could affect a much broader network of scientific partnerships. Among Russia’s more than 30 entries are Lomonosov Moscow State University, Bauman Moscow State Technical University, the Kurchatov Institute, and the defense manufacturer Gidropribor. Iran also has several institutions on the list.

China’s Response

In its formal response on July 29, MOFCOM accused the US of “constantly expanding the concept of national security, artificially setting discriminatory barriers, politicizing, weaponizing, and instrumentalizing research cooperation.” The spokesperson said this “hinders China-US scientific exchanges” and “runs counter to the global trend of S&T innovation cooperation,” according to Xinhua News.

The ministry urged the US to “stop baseless smearing of Chinese research institutions, correct its erroneous practices, and provide fair, just, and non-discriminatory treatment.” China stated it would take “necessary measures” to safeguard the legitimate rights and interests of its research institutions.

Broader Implications

The expansion represents a qualitative shift in US research-security policy. Section 1286 restricts fundamental research — traditionally protected from export controls under National Security Decision Directive 189 since 1985 — based on institutional identity rather than the specific technology involved. As TechTimes detailed, this structural departure has immediate compliance implications for US researchers, who face potential loss of federal funding if they collaborate with listed institutions or their employees.

Under Secretary of War for Research and Engineering Emil Michael framed the update as protecting taxpayer-funded research, with the department committing to refresh the list at least annually.

Meanwhile, parallel developments in Europe suggest a coordinated Western approach: the EU’s Horizon Europe program has adopted rules excluding Chinese-controlled entities from Innovation Actions in artificial intelligence, semiconductors, quantum computing, and biotechnology.

China’s Military-Civil Fusion strategy, elevated under President Xi Jinping in 2017, integrates civilian universities and companies into the defense technology pipeline. The addition of Fudan and Shanghai Jiao Tong indicates the Pentagon believes this pipeline extends well beyond the traditionally defense-designated schools.

What’s Next

China’s vow to take “necessary measures” raises the prospect of retaliatory actions, potentially targeting US research collaborations or technology imports. The Protecting American Research and Talent Act, if enacted, would extend the Section 1286 restrictions to all federal funding, not just Department of War funds, significantly widening the scope of the blacklist.

The broader trajectory points toward the formation of separate Western and Chinese research ecosystems — a decoupling that analysts warn could slow global scientific progress while reshaping the landscape of international academic collaboration for years to come.