US adds Alibaba, BYD, Baidu to list of firms supporting China's military

The U.S. Department of Defense has significantly expanded its blacklist of Chinese companies, designating tech behemoths Alibaba, BYD, and Baidu as entities supporting China's military. This move adds some of China's most recognizable commercial brands to a list that now comprises 188 firms, an increase from 134 in the previous year.

The designation, updated annually, has immediate implications for the targeted companies. Firms included on this list are barred from consideration for U.S. defense contracts. The Pentagon defines these "Chinese military companies" as entities either owned or controlled by China's military or those that contribute to Beijing's "military-civil fusion" strategy, which aims to integrate civilian and defense research and innovation. A key criterion for inclusion is that the companies must also conduct some operations within the United States.

The expansion of the blacklist occurs amid a fragile detente between Washington and Beijing, following years of strained relations. The U.S. government's action is likely to complicate efforts to lower tensions. The inclusion of household names like Alibaba, BYD, and Baidu, which dominate e-commerce, electric vehicles, and internet search respectively, mirrors last year's designation of Tencent, the owner of the messaging app WeChat.

China's embassy in Washington vehemently condemned the U.S. decision, labeling it "discriminatory" and accusing the U.S. government of "overstretching" the concept of national security. A spokesperson for the embassy stated that Chinese companies operating internationally strictly adhere to the laws of their host countries and urged the U.S. to cease its "wrong practice" and foster a fair, just, and non-discriminatory environment for Chinese businesses. Alibaba, BYD, and Baidu had not immediately responded to requests for comment.

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Chinese companies that do business overseas have been strictly observing laws and regulations of their host countries. The US should stop its wrong practice and create a fair, just and non-discriminatory environment for Chinese companies.