In a recent development, the Pentagon has expanded its list of Chinese military companies. This list now includes major firms like Alibaba, BYD, and Baidu. These companies are now barred from securing U.S. defense contracts. The update highlights an increasing suspicion of China’s strategy to involve non-state enterprises in military activities.
The list, established in 2021 by Congress, aims to identify Chinese businesses linked to the military. The listed entities are not only those directly under military control but also those contributing to the national defense capabilities. Last year, the Pentagon stated that Chinese military efforts include acquiring tech from civilian entities.
The Chinese Embassy in the U.S. criticized the additions, calling the move discriminatory. They stated that Chinese companies comply with local laws. In response, Alibaba insisted it is not a military company. Similarly, Baidu dismissed claims of any military affiliation.
This year’s list has surged to 188 entries from about 130 the previous year. DJI, a leading consumer drone manufacturer, was already on the list. Companies listed are still able to operate in the U.S., but they might suffer reputational harm and risk further restrictions.
The House Select Committee on the Chinese Communist Party viewed the list as a caution for U.S. businesses. It warned against engagement with these companies and suggested delisting those publicly traded in the U.S.
Specifically, Alibaba is said to support China’s defense sector due to its ties with the Ministry of Industry and Information Technology. Alibaba trades on the New York Stock Exchange. BYD and Baidu, linked to the same ministry, raise similar concerns. BYD leads in the electric vehicle market. Even with interest from American political figures to invest in U.S. jobs, the company faces scrutiny.
Notably, the robotics company Unitree, known for its innovative bots, has joined the list. The Pentagon accused it of receiving government aid under its status as a critical supply chain entity.
Emails sent to BYD and Unitree for comments remain unanswered at the moment.
Leave a Reply