Pentagon Expands List of Chinese Military Companies, Including Alibaba and Baidu

The Pentagon has updated its list of Chinese military companies, adding well-known firms such as Alibaba, BYD, and Baidu. This update prevents these companies from securing U.S. defense contracts and highlights concerns about Beijing’s use of non-state businesses for military purposes.

The list, mandated by Congress in 2021, identifies Chinese companies linked to the military. They are not necessarily controlled by military forces, but contribute to China’s defense activities. The Pentagon believes the Chinese military is accessing advanced technologies developed by civilian entities like universities and tech firms.

The Chinese Embassy criticized the U.S. for what it described as unfair discrimination against Chinese companies. They insist that these businesses comply with local laws wherever they operate. Alibaba and Baidu maintain that their inclusion on the list is unwarranted. Alibaba stated it is not part of China’s military-civil fusion strategy, while Baidu dismissed the military company label as baseless.

The updated list now includes 188 entities, up from about 130 previously. Notable companies like DJI, a leader in consumer drones, were already on the list. While business in the U.S. is still possible for these companies, they face potential reputational harm and increased restrictions.

The House Select Committee on the Chinese Communist Party indicated that American companies and levels of government should be wary. It suggested companies on the list traded on U.S. exchanges should be delisted to avoid supporting China’s military growth. Alibaba, listed on the New York Stock Exchange, is said to bolster China’s defense base and is linked to the Ministry of Industry and Information Technology.

BYD, a global leader in electric vehicles, and Baidu also fall under the same ministry’s oversight. Despite BYD’s success, some U.S. lawmakers call for a ban on Chinese electric vehicles. A surprising addition is Unitree, a robotics company known for its entertaining robots on “America’s Got Talent.” The Pentagon notes that Unitree received government assistance as a key player in China’s supply chain. Both BYD and Unitree have not commented on these developments.