US Pentagon Recommends Adding Alibaba, Baidu to Military-Linked List

The Pentagon has concluded that Alibaba Group Holding, Baidu Inc, and BYD Co should be added to a list of companies that aid the Chinese military, Bloomberg News reported on Wednesday. This conclusion was reported to lawmakers.

Credit: Defense Department

Deputy Defense Secretary Stephen Feinberg informed lawmakers of the conclusion in a letter on October 7, three weeks before Presidents Donald Trump and Xi Jinping agreed to a broad trade truce, according to the Bloomberg News report.

It is not immediately clear if the companies have been added to the Pentagon's 1260H list of Chinese companies deemed military-linked but operating in the US, Bloomberg reported.

While the designation does not involve immediate bans, it can damage the reputations of affected companies. It also represents a stark warning to US entities and firms about the risks of conducting business with them.

Credit: BYD

Feinberg said Alibaba Group Holding, Baidu Inc, BYD Co, Eoptolink Technology Inc, Hua Hong Semiconductor Ltd, RoboSense Technology Co, WuXi AppTec Co, and Zhongji Innolight Co merit inclusion on the 1260H list, according to the report.

The "Section 1260H list" is an annually updated register of Chinese military companies, formally mandated under US law.

Its last update designated 134 companies in January, including Chinese tech giant Tencent Holdings and battery maker CATL.

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• The Pentagon recommended adding Alibaba, Baidu, and BYD to a list of companies aiding the Chinese military.

• Deputy Defense Secretary Stephen Feinberg informed lawmakers of this conclusion in a letter.

• The 1260H list identifies Chinese companies deemed military-linked but operating in the US.

Source: REUTERS