United States adds popular Chinese firms to Pentagon's "Chinese military company" list
Washington DC, June 9
Well-known Chinese companies, including Alibaba Group Holding Ltd., BYD Co., and Baidu Inc., are added to the US Department of Defense list as "Chinese military companies."
The announcement, posted to the Federal Register on Monday, updates the roster of entities believed by the United States government to aid the People's Liberation Army.
With this latest update, the US Department of Defense designated more than 100 companies of Chinese firms as "Chinese military companies" under Section 1260H of the National Defense Authorization Act.
Other notable companies on the list are CATL, Tencent, Huawei, DJI, TP-Link, Unitree, Hikvision, COSCO Shipping, China Mobile, China Telecom, China Unicom, CNOOC, China State Shipbuilding, Norinco, China Three Gorges, WuXi AppTec, and others.
In making the determination, the Pentagon cited direct or indirect affiliations with Chinese state entities. The document highlighted connections to the State-owned Assets Supervision and Administration Commission (SASAC), the Ministry of Industry and Information Technology (MIIT), the State Administration for Science, Technology and Industry for National Defense (SASTIND), the People's Liberation Army (PLA), the People's Armed Police, or various Chinese security and law-enforcement bodies.
According to the official document, the classification targets entities involved in vital strategic sectors. The Department of Defense designated Chinese entities as military companies, citing affiliations with the Chinese military, government, or military-civil fusion efforts. The list includes firms involved in technology, aerospace, defense, and infrastructure, many controlled or affiliated with SASAC, MIIT, or the PLA.
Furthermore, several companies were cited for participation in programs such as China's "Little Giant" or "Single Champion" schemes, which Washington increasingly views as supporting Beijing's strategic technology ambitions.
The report confirmed the legal basis for the commercial operational status of these specific firms. The Deputy Secretary of Defense has determined that the entities in the list under Section 1260H qualify for designation as "Chinese military companies," are engaged in providing commercial services, manufacturing, producing, or exporting.
The US Department of Defense outlined an official process for listed entities to challenge the designation if they can present contradictory evidence. Entities can request reconsideration with evidence to be removed from the list.
The official guidelines state that any submission must include the department's determination, including a detailed description with supporting evidence of why the listed entity should be removed from the 1260H List.
The guidelines further clarify that the request for reconsideration may also include additional information such as arguments and evidence that establishes that an insufficient basis exists for the listing or that the circumstances resulting in the listing no longer apply.
— ANI
Reader Comments
But isn't this a bit hypocritical? US companies like Google and Amazon have massive data on everyone, but they're not called "military companies." Meanwhile, CATL just makes batteries and BYD makes cars. Feels like economic targeting.
From an Indian perspective, we have to be careful. China uses companies like Huawei for espionage, but also the US is trying to control global tech supply chains. India should balance - partner with both for our benefit, but always keep national security first.
I live in the US and I think this is fair. China uses these companies to steal technology and spy. But the list is too broad - Alibaba is just e-commerce. The Pentagon needs more specific evidence.
India should take notes. Our companies like Tata, Mahindra, and Reliance also have defense contracts. We need clear laws about what military-civil fusion means. Otherwise, our firms could also get targeted by US sanctions some day.
Honestly, this feels like the US is trying to block China's tech progress. But it backfires - China will just become more self-sufficient. India should use this opportunity to attract Chinese companies who want to diversify away from US markets.
S Siddharth J < We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.