US Designates BYD, Alibaba, and Baidu as Chinese Military-Linked Companies
China’s embassy in Washington, DC, condemned the move and labeled it discriminatory
The United States has added Chinese corporate giants Alibaba, BYD and Baidu to its list of companies deemed to support China's military, expanding a blacklist that now includes some of the country's most recognizable commercial brands.
The designation, announced by the Pentagon on Monday, is expected to add strain to already delicate US-China relations despite recent efforts by both sides to ease tensions. Beijing strongly criticized the move, with the Chinese Embassy in Washington describing the listing as discriminatory and accusing the US of excessively broadening the concept of national security.
A spokesperson for the embassy said Chinese companies operating overseas comply with the laws and regulations of their host countries and urged Washington to end what it called unfair treatment of Chinese businesses.
Alibaba rejected the designation, insisting there is no basis for its inclusion on the blacklist. The company stated that it is neither a military enterprise nor part of China's military-civil fusion strategy and vowed to pursue all available legal avenues to challenge the decision.
BYD and Baidu did not immediately comment on the Pentagon's announcement.
The updated list of "Chinese military companies" now contains 188 firms, up from 134 last year. Under regulations due to take effect later this month, companies on the list and entities they control will be excluded from consideration for US defense contracts.
According to the Pentagon, the designation applies to firms that are owned, controlled or influenced by the Chinese military, or that contribute to China's military-civil fusion strategy, which integrates civilian innovation with defense development. The department said Alibaba, BYD and Baidu were included due to links with Chinese state institutions, including the Assets Supervision and Administration Commission and the Ministry of Industry and Information Technology.
Republican Congressman John Moolenaar welcomed the expanded list, arguing that Chinese companies operating against US interests should face tougher measures, including possible removal from American stock exchanges and supply chains.
The blacklist expansion comes shortly after a summit between US President Donald Trump and Chinese President Xi Jinping aimed at reducing tensions stemming from years of trade disputes and technological competition.
Alibaba, Baidu and BYD are leaders in China's e-commerce, internet search and electric vehicle sectors, respectively. Their inclusion follows last year's addition of Tencent, the owner of the popular messaging platform WeChat.
Other firms added to the list include RoboSense Technology and Unitree Robotics.
Former CIA and White House China expert Dennis Wilder questioned the effectiveness of such a broad blacklist, arguing that many American companies maintain significant commercial ties with the designated firms and are unlikely to sever those relationships without substantial penalties.
Wilder also warned that wide-ranging sanctions are often ineffective unless accompanied by a broader economic decoupling strategy, suggesting that such measures may be more symbolic than practical.
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