The US Department of Defense has added Alibaba and BYD, two of China’s biggest corporate names, to a list of companies it says are linked to the Chinese military – a move that risks inflaming tensions between Washington and Beijing.
The Pentagon’s Section 1260H list, published in the Federal Register on Monday, names 188 Chinese companies deemed a national security risk to the US, many of which provide commercial services for America or compete directly with its firms in industries such as electric vehicles and artificial intelligence.
“US Pentagon adds Alibaba and BYD to list of 188 firms with alleged Chinese military ties.”
BYD, which does not export its cars to the US, earlier this year overtook Tesla to become the world’s top EV maker. Alibaba, the e-commerce giant, was among those accused of being a “military-civil contributor” to Chinese defence operations, along with tech firm Baidu.
The Chinese embassy in the US told the BBC the list was “discriminatory” and said Chinese firms have strictly complied with foreign laws. Beijing is likely to view the move as “a form of economic containment”, said Stefanie Kam, a policy analyst from Nanyang Technological University. She warned that China could retaliate with tit-for-tat sanctions, add American firms to a list of its own, or respond with diplomatic pushback.
Inclusion on the list does not trigger immediate sanctions. Instead, it alerts American organisations to the risks of doing business with the flagged firms. But the companies themselves have pushed back. An Alibaba spokesperson said the firm “is not a Chinese military company nor part of any military-civil fusion strategy” and will “take all available legal action against attempts to misrepresent our company”. A Baidu spokesperson said there was “no credible justification” for its inclusion and that it would “use all options available” to be removed.
Other Chinese firms on the list include electric car maker Nio, aircraft manufacturer Comac, and previously added companies such as Tencent, Huawei, DJI and CATL. Last month, Washington barred US firms from doing business with Huawei over national security concerns linked to its equipment.
The BBC has contacted BYD and several other firms for comment.