China Criticizes US Addition of Major Chinese Companies to Military List
China opposed the Pentagon's decision to add BYD, Alibaba, and Baidu to its list of Chinese military companies, saying it violated recent bilateral agreements.
China said Saturday it firmly opposed the United States adding several prominent Chinese businesses to its list of companies with alleged military ties, calling the move a violation of agreements reached during recent high-level talks between the two countries.
The Pentagon on Monday added several Chinese companies to its list identifying firms it deems to have connections to the Chinese military. The additions included electric vehicle manufacturer BYD, technology giants Alibaba and Baidu, and other non-state-owned enterprises. Companies on this list are prevented from receiving U.S. defense contracts.
A spokesperson for China's Ministry of Commerce said the U.S. action "ignored the consensus reached during the meeting between the heads of state of the two countries in Beijing." The spokesperson accused Washington of disregarding bilateral economic interests and "continuously generalized the concept of national security" while using "state power to unjustifiably suppress Chinese enterprises."
The three major companies targeted - BYD, Alibaba and Baidu - have said there is no basis for including them on the military companies list. All three are publicly traded corporations operating primarily in civilian markets including electric vehicles, e-commerce, and internet services.
The dispute follows President Donald Trump's visit to Beijing in mid-May for a summit with Chinese leader Xi Jinping. During those talks, the two leaders agreed to strengthen economic ties, including China's commitment to purchase more U.S. agricultural products and Boeing aircraft, and to establish separate boards for trade and investment cooperation.
The Pentagon's list is part of broader U.S. efforts to restrict Chinese companies' access to American technology and markets over national security concerns. The designation reflects ongoing tensions between the world's two largest economies despite diplomatic efforts to improve relations.