US Adds BYD, Alibaba and Other Chinese Firms to Military-Linked Companies List
The United States has added several major Chinese companies, including BYD and Alibaba Group, to a list of firms that the US government alleges have ties to China’s military establishment.
The designation, issued by the United States Department of Defense under its Section 1260H list, is intended to alert American businesses and investors to potential national security risks associated with the named companies. However, inclusion on the list does not automatically result in sanctions or business restrictions.
The latest update, published in the Federal Register, identifies 188 companies classified as “Chinese military companies,” many of which operate in sectors such as technology, electric vehicles, artificial intelligence, aviation, and telecommunications.
Among the newly listed firms are Baidu, electric vehicle manufacturer NIO, and aircraft maker COMAC. Previously listed companies such as Tencent, Huawei, DJI, and CATL remain on the list.
Responding to the development, the Chinese embassy in Washington criticized the move, describing the list as “discriminatory” and insisting that Chinese companies operating abroad comply with local laws and regulations.
Alibaba also rejected its inclusion, stating that it had no connection to the Chinese military.
An Alibaba spokesperson said the company was “not a Chinese military company nor part of any military-civil fusion strategy.”
“We will take all available legal action against attempts to misrepresent our company,” the spokesperson added.
Similarly, Baidu challenged the designation, saying there was “no credible justification” for its inclusion and that it would pursue all available options to have its name removed from the list.
Analysts suggest that the move could further strain relations between Washington and Beijing, particularly as many of the companies identified are industry leaders competing with major American firms.
BYD, for example, recently overtook Tesla as the world’s largest electric vehicle manufacturer by sales, despite not exporting its vehicles to the US market.
According to policy analyst Stefanie Kam of Nanyang Technological University, Beijing may view the decision as a form of economic containment and could respond through diplomatic measures or reciprocal actions against American businesses.
The latest action underscores the growing competition between the world’s two largest economies, particularly in strategic sectors such as advanced manufacturing, electric vehicles, artificial intelligence, and telecommunications.
