Pentagon labels tech giant Alibaba and electric car maker BYD as aiding Chinese military

The Pentagon updated its list of Chinese military-affiliated companies on Monday, including tech giant Alibaba, electric vehicle maker BYD, and search engine Baidu. This move prevents these firms from securing U.S. defense contracts, reflecting concerns over Beijing’s use of civilian companies to support its military capabilities. The list, mandated by Congress in 2021, now totals 188 entities, up from around 130 last year, and targets firms linked to China’s defense industrial base, even if not directly state-owned. The Pentagon cited Alibaba’s affiliation with China’s Ministry of Industry and Information Technology as justification for its inclusion, noting the company’s role in boosting China’s defense sector. BYD and Baidu were also added due to their ties to the same ministry, which oversees technology and industrial policies. While listed companies can still operate in the U.S., they face reputational harm and potential restrictions. The Chinese Embassy condemned the U.S. move, calling it discriminatory and an overreach of national security concerns. It insisted Chinese companies comply with local laws and urged the U.S. to stop what it described as unfair practices. Alibaba and Baidu denied the allegations, with Alibaba stating it is not part of China’s military-civil fusion strategy, while Baidu dismissed the claim as baseless. A U.S. congressional committee responded by labeling the list a warning to American businesses and government, demanding publicly traded firms on the list be delisted. It also called for a boycott of these companies to prevent China’s military growth. The expanded list underscores rising tensions between the U.S. and China over technology and defense collaboration.