The US added Alibaba, BYD, and Baidu to the 'blacklist': what is the reason
The US Department of Defense has added several major Chinese companies, including tech giant Alibaba, electric vehicle manufacturer BYD, and Baidu, to a list of companies that, according to the American side, are connected to the Chinese military, BBC reports.
The Department of Defense's list aims to warn American organizations about the risks of doing business with such companies. However, inclusion on the list does not mean immediate sanctions are imposed.
The Chinese Embassy in the US told BBC that this list is "discriminatory" and stated that Chinese companies strictly comply with laws abroad.
The list, known as Section 1260H, was published in the US Federal Register on June 8. It includes some of the largest Chinese companies, which may further escalate tensions between Washington and Beijing.
The Pentagon's list contains over 80 "Chinese military companies" that are directly or indirectly involved in providing commercial services in the US.
Some of these companies directly compete with major American corporations in the fields of electric vehicles and artificial intelligence.
In particular, BYD, which does not export its cars to the US, earlier this year surpassed Tesla to become the world's largest electric vehicle manufacturer.
According to Nanyang Technological University public policy expert Stephanie Kam, Beijing is likely to view this move as a "form of economic containment."
She said China may respond with reciprocal sanctions, including adding American companies to its own list or other diplomatic measures.
According to the list, Alibaba, BYD, and tech company Baidu were accused of playing the role of civilian-military partners in Chinese defense programs.
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