Pentagon Expands List of Chinese Firms Linked to Military

The Pentagon has expanded its list of Chinese companies linked to the military. Notable additions include Alibaba, BYD, and Baidu. These prominent non-state-owned entities are now barred from receiving U.S. defense contracts. The move highlights concerns over Beijing’s use of civilian businesses for military purposes.

Established in 2021, the Pentagon’s list identifies firms with ties to China’s military. It includes both direct military affiliates and contributors to the defense sector. Last year, the Pentagon noted China’s military interest in technologies from civilian firms and universities.

The Chinese Embassy criticized the U.S. for creating what it calls unfair and discriminatory lists against Chinese businesses. In response, Alibaba and Baidu denied any military links. Alibaba stated it is not part of any military-civil fusion strategy. Baidu labeled claims of its military affiliation as baseless.

The updated list features 188 Chinese entities, an increase from the previous 130. Previously included firms like DJI, known for drone manufacturing, remain on the list. Listed companies can still operate in the U.S. but face reputational and potential operational restrictions.

The House Select Committee on the Chinese Communist Party urged a stronger stance. It suggested delisting these firms from U.S. exchanges. Publicly traded companies on the list may face increased scrutiny.

The Pentagon linked Alibaba to China’s Ministry of Industry and Information Technology, a body overseeing industrial policies. BYD and Baidu also have ties to this ministry. While BYD leads in the global electric vehicle market, discussions on potential U.S. ventures continue despite growing tensions.

U.S. lawmakers are pushing for a ban on Chinese electric vehicles. Additionally, robotics company Unitree appeared on the updated list. Known for its dancing robots, the company reportedly received government support, reflecting its significance to China’s supply chain.