The Pentagon has added more Chinese companies to a list it claims are connected to China’s military. This expansion includes some of China’s top technology and consumer brands. The list’s growth could lead to future investment restrictions and sanctions.
Under a mandate from Congress in 2021, the updated list now consists of 188 entities. The U.S. Department of Defense believes these entities are part of or support China’s military-industrial complex. Notable additions include Alibaba, BYD, and Unitree. These companies are privately owned and not typically linked to the defense sector.
Concerns in Washington
Concerns in Washington are increasing over China’s military improvements. U.S. officials worry about the civil-military fusion strategy in China, which seeks to combine commercial innovation with national defense improvements. China’s policies could force companies to share data and technology with the government, enhancing China’s military capabilities.
The designation coincides with efforts by the U.S. to limit China’s access to advanced technologies. The focus includes AI chips, semiconductor tools, and quantum computing technologies.
Implications of the List
Being on the Pentagon’s list does not trigger sanctions immediately. However, it could be the basis for future investment, procurement, and commercial restrictions.
Beijing’s Reaction
China condemned the U.S. move, alleging unfair targeting of Chinese businesses under the guise of national security. Foreign Ministry spokesperson Lin Jian urged the U.S. to revise its stance to stop the suppression of Chinese companies. Lin assured that China would take necessary steps to protect its firms’ rights.
Reasons for the Additions
Alibaba, added for its alleged ties to China’s Ministry of Industry and Information Technology, is a major e-commerce and cloud computing company.
BYD, one of the largest electric vehicle makers globally, was also included. Despite virtually no U.S. market share, BYD is expanding in the automotive sector.
Unitree, famous for its humanoid robots, is another addition. The company’s robots gained global attention during China’s Spring Festival Gala.
Newsweek contacted Alibaba, BYD, and Unitree for comments but had not received responses at the time of publication.
Call for Tougher Measures
The U.S. House Select Committee on the Chinese Communist Party praised the updated list. It advocated for more stringent actions against the listed companies. The committee warned American businesses and investors about the risks of Chinese entities relating to national security.
They called for the delisting of these entities from U.S. exchanges and urged the removal of their products from vital supply chains.
Overall, this list expansion is part of the growing U.S. scrutiny of Chinese firms in sectors deemed critical. The competition between the U.S. and China now spans beyond trade to include technology, investment, and security concerns.
This article includes reporting by The Associated Press.