New Delhi: The Pentagon accused some of China’s biggest companies, including Alibaba Group Holding Ltd., Baidu Inc. and BYD Co. of supporting the Chinese military, doubling down on an earlier decision to label crown jewels of the country’s corporate world as threats to US national security.
The Defense Department announced the designations Monday in an update to a roster of companies that it has determined aid the People’s Liberation Army. The companies were included in a previous version that was posted briefly in February before being withdrawn minutes later without any explanation, sowing confusion about the Pentagon’s intentions.With the move, the US has now declared that three of China’s most prominent artificial intelligence champions — Alibaba, Baidu and Tencent Holdings Ltd. — are aiding the Asian country’s armed forces. Tencent was added to the list in 2025 and has been seeking its removal. The designation of BYD singles out China’s top electric-vehicle company.
Alibaba shares fell as much as 1.4% in Hong Kong trading on Tuesday, while Baidu pared earlier gains to trade 1.2% higher. The relatively muted response in Asian markets suggests investors have become accustomed to recurring regulatory broadsides from Washington.Representational Image | The Chinese People’s Liberation Army honor guard. Photo by Alex Wong/Getty Images Photographer: Alex Wong/Getty Images AsiaPac via Bloomberg
