The US has added Chinese companies BYD, Alibaba, and Baidu to its military blacklist, citing their ties to China's military. The Pentagon updated its list on Monday, including these firms as they are deemed to support China's military activities. This decision comes amid ongoing efforts to normalize US-China relations, potentially complicating these efforts. The Chinese Embassy in Washington condemned the decision as 'discriminatory', while Alibaba denied any military ties and threatened legal action if its reputation is harmed. The updated list now includes 188 entities, significantly more than last year.
Companies on this list and their controlled entities will not be considered for future US defense contracts. The US claims these entities are directly linked to China's military or support its military-civil fusion strategy. The updated list states that Alibaba, BYD, and Baidu contribute to military development through their ties with Chinese government agencies. This decision follows recent high-level meetings between the US and China, despite efforts to reduce trade and tech tensions. Analysts question the effectiveness of such a broad list, given the deep interconnections between US and Chinese economies.
