US adds Alibaba, BYD, Baidu to 'military companies' blacklist

The U.S. Department of Defense has significantly expanded its list of "Chinese military companies," adding prominent technology giants such as Alibaba, Baidu, and BYD. This move, announced on June 8, brings the total number of designated companies to 188, a substantial increase from the previous figure of around 130. The Pentagon identified these firms as contributing to China's military-industrial base through their commercial services, manufacturing, production, or export activities.

The updated roster includes a diverse range of companies beyond traditional defense contractors. E-commerce and cloud computing firm Alibaba, and search and artificial intelligence company Baidu, were designated for their links to China's Ministry of Industry and Information Technology (MIIT) and their role in the "civil-military fusion" strategy. Electric vehicle manufacturer BYD was also cited for its connections to Chinese state entities and its involvement in civil-military fusion. Memory chip makers like Changxin Memory Technologies (CXMT) and Yangzi Memory Technologies (YMTC), along with robotics firm Unitree and lidar company RoboSense, were also added.

While inclusion on this list does not trigger immediate U.S. sanctions, it carries significant implications. Starting at the end of June, these companies will be barred from entering into direct contracts with the U.S. Department of Defense. Furthermore, from 2027, procurement through third parties, such as subcontractors or suppliers, will also be restricted.

This expansion reflects growing U.S. concerns that China is leveraging the capabilities of its private sector for military purposes. The inclusion of major civilian tech firms, many of which were not previously considered in the defense or security sphere, underscores this apprehension. The move comes less than a month after a summit between U.S. President Donald Trump and Chinese President Xi Jinping, suggesting that despite some easing of trade tensions, competition in advanced technology sectors remains a key point of friction.

China has strongly condemned the U.S. action, with its embassy in Washington issuing a statement accusing the U.S. of abusing its national security concept to create discriminatory lists targeting Chinese companies. Beijing urged Washington to cease these "wrong practices" and foster a fair and equitable environment for Chinese businesses.

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The United States is abusing the concept of national security and creating discriminatory lists targeting Chinese companies. It must stop these wrong practices and create a fair, just, and non-discriminatory environment for Chinese companies.