Why did the Pentagon add Chinese giants Alibaba and Baidu to its “blacklist”?
9 June 20:36
The U.S. Department of Defense has added a number of Chinese companies—including tech giants Alibaba and Baidu, as well as automakers BYD and Nio—to a list of firms that, according to the Pentagon, are assisting the Chinese military.
This was reported by Reuters , according to "Komersant Ukrainian".
According to the publication, this decision could exacerbate tensions between the U.S. and China, especially given President Donald Trump’s recent visit to Beijing.
It is noted that in February—prior to Trump’s visit to China—the Pentagon briefly published this updated list, known as the 1260H or CMC list, but then quickly removed it without providing any specific explanation.
Reaction from Chinese companies
Alibaba
Alibaba has denied any involvement in military activities, stating that there is “no basis” for its inclusion on the list. The company maintains that it is not a Chinese military company and insists on its innocence.
Baidu
Baidu also issued a strong statement denying its involvement in military affairs.
The company emphasized that it is neither a Chinese military company nor a military-civilian defense industry enterprise.
“Since our company is neither a Chinese military company nor a Chinese military-civilian defense industry enterprise, we believe there are no legal grounds for including the company on this list,” the statement said.
Baidu stated its readiness to use all available means to be removed from the list.
China’s Position
The Chinese Embassy in Washington has spoken out against discriminatory lists, noting that Chinese companies comply with local laws. Beijing has called on the U.S. to stop this practice and create a fair environment for Chinese firms.
“The U.S. must stop its wrongful practices and create a fair and non-discriminatory environment for Chinese companies,” the embassy spokesperson said in a statement.
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Consequences of being placed on the list
Although being placed on the list does not entail immediate sanctions, it prohibits companies from serving as Pentagon contractors.
It is also noted that this may signal to investors potential future restrictions.
“Currently, the list includes over 100 Chinese companies associated with various sectors, such as aviation, electronics, construction, logistics, and communications,” the publication writes.
It is worth noting that the U.S. Department of Defense has been publishing a list of Chinese military companies since 2021. While this decision does not lead to immediate trade sanctions, it has a significant impact on the reputation and business opportunities of the firms listed.
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