The Pentagon has officially designated Chinese tech giant Alibaba and electric vehicle manufacturer BYD as entities that support the Chinese military, according to a report released Tuesday. The move is part of a broader effort by the U.S.
Department of Defense to identify and counter companies that it says contribute to China's military modernization. The designation places both companies on a list of Chinese firms that the Pentagon claims are involved in activities that benefit the People's Liberation Army.
Alibaba, known for its e-commerce and cloud computing services, and BYD, a leading producer of electric cars and batteries, have both denied any direct military ties. The Pentagon's action could lead to increased scrutiny and potential sanctions against these companies, affecting their operations in the United States and other markets.
The announcement comes amid ongoing tensions between the U.S. and China over trade, technology, and military activities in the Indo-Pacific region.
The Pentagon's list is updated periodically and includes companies from various sectors, including technology, manufacturing, and energy. The designation does not impose immediate penalties but serves as a warning to U.S.
companies and investors about potential risks associated with these firms. Alibaba and BYD have not yet commented on the Pentagon's decision.
The move is expected to further strain relations between Washington and Beijing, as both nations continue to navigate a complex geopolitical landscape.