WASHINGTON — The Defense Department has designated several high-profile Chinese corporations, including technology powerhouse Alibaba, automobile manufacturer BYD, and internet search company Baidu, as entities supporting China’s military operations, barring them from securing contracts with the U.S. military.
The updated roster, released Monday by the Pentagon, now includes 188 Chinese organizations, marking an increase from approximately 130 entities listed previously. This expansion targets well-recognized private Chinese enterprises outside traditional defense sectors, demonstrating heightened concern over Beijing’s approach of leveraging civilian businesses for military advancement.
Established in 2021 through congressional direction, the designation aims to spotlight Chinese enterprises the Pentagon believes maintain connections to China’s armed forces — encompassing not just those under direct military oversight but also organizations supporting the nation’s defense manufacturing capabilities.
During last year’s update, Pentagon officials noted that Chinese military forces were working to obtain cutting-edge technologies and knowledge from Chinese corporations, academic institutions, and research initiatives that “appear to be civilian entities.”
Chinese Embassy representatives on Monday criticized the United States for “overstretching the concept of national security and making discriminatory lists to go after Chinese companies.” Embassy officials stated that Chinese businesses comply with legal requirements in their operating countries. “The U.S. should stop its wrong practice and create a fair, just and non-discriminatory environment for Chinese companies,” the embassy said in a statement.
While companies appearing on this designation may continue U.S. operations, they encounter reputation challenges and potential additional regulatory constraints. The list previously included organizations like DJI, a leading consumer drone manufacturer.
Regarding Alibaba’s inclusion, Pentagon officials cited the company’s connection to China’s Ministry of Industry and Information Technology as evidence of its contribution to the country’s defense manufacturing sector. The technology company maintains listings on the New York Stock Exchange.
Defense officials indicated that BYD and Baidu share affiliations with the same ministry, which directs China’s technological and industrial strategies. BYD holds a leading position in worldwide electric vehicle sales, and President Donald Trump indicated in January his openness to Chinese automakers like BYD establishing U.S. manufacturing facilities and employing American personnel.
Nevertheless, multiple U.S. congressional members have expressed intentions to pursue legislation banning Chinese electric vehicles.
The updated list also features Chinese robotics firm Unitree, whose performing robots gained attention from Simon Cowell on NBC’s “America’s Got Talent.” Pentagon officials stated the company “knowingly received assistance” from Chinese authorities through recognition as a small or medium-sized enterprise deemed highly innovative, globally competitive, and essential to national supply chains.
Alibaba, BYD, Baidu and Unitree did not immediately respond to emails seeking comment.
