WASHINGTON - The U.S. Defense Department said Monday it has added Alibaba Group Holding Ltd., Baidu Inc., BYD Co. and other leading Chinese companies to a long list of entities it believes to be working with China's military.
The expansion of the list comes after U.S. President Donald Trump and Chinese President Xi Jinping agreed to stabilize bilateral relations during talks in Beijing in mid-May, despite intense geopolitical rivalry and disputes over numerous issues.
In designating the companies, the U.S. department asserted that BYD, China's largest electric vehicle maker, and internet titans Alibaba and Baidu contribute to the country's defense industrial base as they are affiliated with its Ministry of Industry and Information Technology.
The Pentagon believes China's "military-civil fusion" strategy has helped modernize the People's Liberation Army. It is required by law to annually update and publish the list of so-called Chinese military companies operating directly or indirectly in the United States.
While appearing on the list does not lead immediately to legal steps by U.S. agencies, such as export controls or sanctions, the reputations of those named can be impacted. The department is also restricted from entering into contracts with designated entities.
The Pentagon's list, launched in 2021, is part of U.S. efforts to hobble China's ambitions to develop advanced technologies for military applications.
