U.S. Adds Alibaba, BYD, Baidu to List of Chinese Military-Affiliated Companies

The U.S. Department of Defense has expanded its roster of "Chinese Military-Affiliated Companies," adding 188 entities, including prominent Chinese technology firms such as Alibaba, BYD, and Baidu. This move, announced on June 8, signifies a continued effort by the U.S. to identify and scrutinize companies with potential ties to the Chinese military.

The updated list, compiled under Section 1260H of the National Defense Authorization Act (NDAA), also re-includes significant players in China's semiconductor industry. Among them are Yangzte Memory Technologies Corp. (YMTC), a leading NAND flash manufacturer, DRAM maker Changxin Memory Technologies (CXMT), and China's largest foundry, Semiconductor Manufacturing International Corp. (SMIC).

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The Department of Defense updated the list of Chinese military-affiliated companies operating directly or indirectly within the United States pursuant to Section 1260H of the NDAA and published it in the Federal Register. Based on the Department of Defense's due diligence, 188 institutions and companies that meet the requirements are included.

In a press release, the Pentagon explained that the list, which details companies operating directly or indirectly within the United States, has been updated based on due diligence reviews. A total of 188 institutions and companies met the criteria for inclusion. The department emphasized its commitment to continually updating and supplementing the list as necessary.

The U.S. government retains the authority to implement additional measures against the companies designated on this list, utilizing its legal powers under provisions like Section 1260H of the NDAA. The criteria for designation are based on assessments by various Chinese governmental bodies, including the State-owned Assets Supervision and Administration Commission (SASAC), the Ministry of Industry and Information Technology (MIIT), the China National Space Administration (CNSA), and the People's Liberation Army (PLA).

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The list will continue to be supplemented and updated to include additional targets as necessary. The U.S. government reserves the right to take additional measures against companies on the list, in accordance with its legal authorities, including Section 1260H of the NDAA.