US adds Alibaba, BYD, Baidu to list of Chinese military firms

The United States has further tightened its scrutiny of Chinese technology companies by designating several prominent firms, including Alibaba, BYD, and Baidu, as supporting China's military. The U.S. Department of Defense announced this addition to its roster of Chinese Military Companies (CMCs), a move that prohibits the Pentagon from entering into contracts with these entities.

While the designation does not entail immediate sanctions, it serves as a significant warning to U.S. military suppliers and other government agencies. The list, established in 2021, aims to identify companies that the Pentagon believes are linked to the Chinese military's modernization efforts. Firms like the drone manufacturer DJI are already on this list.

The latest update includes not only major tech players like e-commerce giant Alibaba, electric vehicle maker BYD, and search engine operator Baidu, but also semiconductor manufacturers CXMT and YMTC, biotech firm WuXi AppTec, and robotics companies RoboSense and Unitree. Some subsidiaries of the state-owned oil company CNOOC were removed, reportedly because they are no longer active in the U.S.

This decision comes amid growing concerns in the U.S. about China's strategy of leveraging its private sector for military purposes. It follows a period of fragile détente in the trade dispute between the U.S. and China, marked by a recent meeting between President Donald Trump and Chinese President Xi Jinping in Beijing. Neither the Chinese embassy in Washington, D.C., nor the affected companies have issued public statements regarding the new designations.