Credited from: SCMP
The Pentagon has officially designated several major Chinese firms, including Alibaba, BYD, and Baidu, as "Chinese military companies," in an expansion of its blacklist intended to limit their operations in the United States. This designation falls under Section 1260H of the 2021 National Defense Authorization Act, which allows the US government to identify companies that contribute to China's military capabilities, aiming to restrict their access to American capital and government contracts, according to South China Morning Post.
This latest move adds significant players in the tech industry to a list that previously focused on more traditional defense and surveillance companies. The Pentagon's list includes over 188 firms, up from 134 in the previous year, raising concerns about heightened tensions between Washington and Beijing amid ongoing trade and tech rivalries, according to BBC and Al Jazeera.
In response to the designation, the Chinese embassy in Washington condemned the actions, describing the blacklist as "discriminatory" and criticizing the US for attempting to overstretch national security definitions. The embassy reiterated that Chinese firms have maintained compliance with laws in their host countries and urged the US to create a fair business environment, according to Al Jazeera.
Representatives from Alibaba and BYD have publicly denied any military ties, asserting that they are not involved in any military-civil fusion strategies. Alibaba's spokesperson emphasized their commitment to legal recourse against any misrepresentation, reflecting the growing concerns Chinese companies have as they navigate international regulations, as highlighted by South China Morning Post.