US Adds Alibaba, BYD to Military-Linked Firms List, Escalating Trade Tensions

The United States has placed several prominent Chinese technology and industrial firms, including e-commerce giant Alibaba, search engine company Baidu, and electric vehicle manufacturers BYD and NIO, on a list of companies suspected of supporting China's military. This action is expected to reignite trade and technology tensions between Washington and Beijing.

The updated list, replacing a previous version from early 2025, comes shortly after a fragile trade truce between U.S. President Donald Trump and Chinese President Xi Jinping. China's Ministry of Foreign Affairs criticized the list as "discriminatory" and called on the U.S. to review its practices, asserting that Beijing will take necessary steps to protect the rights of its companies. The ministry highlighted that many listed companies play significant roles in China's military and industrial capabilities.

“

The list is 'discriminatory' and 'unfairly pressures' Chinese companies.

Beyond major tech conglomerates, the new list includes companies in biotechnology and artificial intelligence, such as WuXi AppTec, RoboSense, and humanoid robot manufacturer Unitree. Notably, U.S. chipmaker Nvidia had previously announced plans for collaboration in robotics with Unitree.

“

BYD denies being classified as a military company and will pursue legal avenues against the decision.

Several of the designated companies have strongly refuted the claims. BYD has declared its intention to pursue legal action against the classification as a military company, stating it has no military connections. Alibaba similarly defended itself, calling the listing "baseless." Baidu also denied the allegations and announced it would explore all legal options to be removed from the list.

While the designation itself does not impose direct sanctions, it restricts the U.S. Department of Defense from entering into contracts with these companies. Future indirect supply chain restrictions are also possible in the coming years. Experts view this update as indicative of a broader geopolitical struggle, with the U.S. increasingly assessing Chinese firms not as individual entities but as integral components of a strategic technological ecosystem.

“

The listing is 'baseless' and the company has no military connections.