Pentagon adds Alibaba, BYD, Baidu to China list

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1–2 minutes

Summary

Pentagon expanded its Chinese military companies list to 188 entities, adding Alibaba, BYD, Baidu, and Unitree.

Why this matters

The list can block companies from U.S. defense contracts and expose them to further restrictions. It also reflects broader U.S. concern about ties between Chinese commercial firms and China’s military-industrial base.

The Pentagon added several Chinese companies, including Alibaba, BYD, and Baidu, to its list of Chinese military companies, a designation that bars them from receiving U.S. defense contracts.

The updated list, published Monday, grew to 188 entities from about 130 last year. It includes companies the Pentagon said have links to China’s military or contribute to its defense industrial base, including some that are not state-owned or traditionally associated with defense.

The list was created in 2021 under a congressional mandate. When updating it last year, the Pentagon said China’s military sought to acquire advanced technologies and expertise developed by companies, universities, and research programs that “appear to be civilian entities.”

The Chinese Embassy said the United States was “overstretching the concept of national security and making discriminatory lists to go after Chinese companies.” It added that Chinese companies follow local laws where they operate and said, “The U.S. should stop its wrong practice and create a fair, just and non-discriminatory environment for Chinese companies.”

The Pentagon said Alibaba, BYD, and Baidu are affiliated with China’s Ministry of Industry and Information Technology, which oversees technology and industrial policy. In Alibaba’s case, the Pentagon said that affiliation helps support China’s defense industrial base. Alibaba is listed on the New York Stock Exchange.

A company on the list can still do business in the United States, but the designation can carry reputational costs and lead to additional restrictions.

After the update, the House Select Committee on the Chinese Communist Party called the list “a warning to American businesses, all levels of government, and the American people.” The committee said companies on the list that trade on U.S. exchanges should be delisted and that no American company should do business with them, “otherwise they are enabling China’s military ascendance.”

The update also added robotics company Unitree. The Pentagon said Unitree “knowingly received assistance” from the Chinese government through a designation for innovative small and medium-sized companies critical to China’s supply chain. Unitree did not immediately respond to a request for comment.

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