The United States has added several major Chinese companies, including BYD, Alibaba Group and Baidu, to its list of firms allegedly linked to China’s military, marking a fresh escalation in the ongoing strategic and technology rivalry between the world’s two largest economies.
The designation was made by the US Department of Defense, which maintains a list of companies it believes have connections to the Chinese military. Inclusion on the list does not automatically trigger sanctions or immediate restrictions, but it can discourage US investment and increase regulatory scrutiny of the affected companies.
US officials said the move reflects concerns about the relationship between China’s military establishment and large private-sector companies operating in strategically important industries such as artificial intelligence, advanced technology, data services, electric vehicles and communications.
The latest additions include some of China’s most prominent corporations. BYD is one of the world’s leading electric vehicle manufacturers, while Alibaba and Baidu are major players in e-commerce, cloud computing, artificial intelligence and digital services.
The companies have denied any military links and rejected the Pentagon’s characterisation. They argued that they are commercial enterprises operating independently and in compliance with applicable laws and regulations. Some firms indicated they would review legal options and engage with US authorities regarding the designation.
China strongly criticised the decision, accusing Washington of politicising trade and technology issues and attempting to suppress Chinese companies under the guise of national security concerns. Beijing said such actions undermine fair competition and disrupt global business operations.
The development comes amid continuing tensions between the United States and China over technology leadership, trade policies, semiconductor restrictions and national security concerns. In recent years, Washington has imposed a range of measures targeting Chinese technology firms, while Beijing has responded with its own regulatory and economic actions.