United States adds popular Chinese firms to Pentagon's "Chinese military company" list

The United States Department of Defense has expanded its roster of "Chinese military companies" by adding prominent Chinese firms such as Alibaba Group Holding Ltd., BYD Co., and Baidu Inc. This latest update to the Federal Register brings the total number of designated entities to over 100.

The designation, made under Section 1260H of the National Defense Authorization Act, targets companies believed by the U.S. government to support the People's Liberation Army (PLA). The Pentagon cited direct or indirect affiliations with Chinese state entities, including the State-owned Assets Supervision and Administration Commission (SASAC), the Ministry of Industry and Information Technology (MIIT), and the PLA itself, as grounds for inclusion.

Other notable companies added to the list include CATL, Tencent, Huawei, DJI, and COSCO Shipping, among others. These firms operate in strategic sectors such as technology, aerospace, defense, and infrastructure. The U.S. government views some of these companies' participation in programs like China's "Little Giant" or "Single Champion" schemes as supporting Beijing's strategic technology ambitions.

The Department of Defense has established a process for listed entities to contest their designation. Companies can request reconsideration by submitting detailed evidence demonstrating why they should be removed from the list, arguing that there is insufficient basis for their inclusion or that the circumstances leading to the listing no longer apply.