US flags Alibaba, BYD over alleged Chinese military links before key summit

New Delhi, Feb 14 (IANS) The US Department of Defence has decided to add several major Chinese companies, including Alibaba and BYD, to a list of firms it believes have links to China’s military, a report has said.

The move comes just weeks before US President Donald Trump is expected to meet Chinese President Xi Jinping in Beijing, raising the possibility of fresh tensions between the two countries, as per Financial Times report.

The Pentagon submitted its updated “Chinese Military Companies” list, also known as the 1260H list, to the Federal Register on Friday.

However, the document was suddenly removed from the website at the Pentagon’s request without any explanation, as per the report.

A defence official later said the revised list would be released next week. Along with Alibaba and BYD, the Pentagon plans to add search engine giant Baidu.

The list, mandated by the US Congress, names companies that Washington believes have direct ties to the People’s Liberation Army or are involved in China’s military-civil fusion programme, which requires firms to share technology with the military.

Although being placed on the list does not automatically trigger legal penalties for most companies, it can damage their reputation and signal possible future restrictions.

However, the inclusion of biotechnology company WuXi AppTec could have more serious consequences, the report stated.

Under the Biosecure Act passed in December, the US federal government is barred from doing business with biotechnology companies of concern, including those on the 1260H list.

The Pentagon also added RoboSense, an AI-driven robotics firm, and BOE Technology, a display panel maker.

At the same time, it unexpectedly removed memory chipmakers CXMT and YMTC from the list, a move that surprised some experts who questioned why the companies were cleared.

The decision to include Alibaba follows earlier reports that US intelligence agencies believed the company posed a national security risk.

A White House memo reportedly alleged that Alibaba provided technical support for Chinese military operations and gave the Chinese government access to customer data. Alibaba strongly denied the claims, saying it is not a military company and has no role in any military-civil fusion strategy.

Baidu and BYD also rejected the Pentagon’s allegations, calling them baseless and unfounded.

Both companies said they would consider legal options to challenge the decision, the report said.