BEIJING: The United States on Monday (Jun 8) added e-commerce giant Alibaba, internet search provider Baidu, carmaker BYD and dozens of other Chinese companies to a list of firms it says are linked to China’s military, drawing sharp criticism from Beijing and the affected businesses. The Pentagon designation thrusts some of China’s best-known corporate names into Washington’s crosshairs, highlighting its expanding scrutiny of commercial technology that could support Beijing’s defence capabilities, say analysts.The move comes just weeks after the high-stakes summit in Beijing between US President Donald Trump and Chinese counterpart Xi Jinping that sought to stabilise ties between the world’s two largest economies.What is this list, why does it matter and how could it impact US-China relations? Here’s what you need to know.WHAT IS THIS LIST?Known as the 1260H or CMC list, it is maintained by the US Department of Defense to identify Chinese companies that Washington says are connected to the People’s Liberation Army (PLA). The 1260H designation comes from the relevant section of the 2021 National Defense Authorization Act.
Inclusion does not prevent companies from operating in the US. But it can lead to investment restrictions and increased scrutiny, as the designation signals that these firms are considered strategically sensitive.First published in June 2021, the list has been updated several times since. It now covers 188 entities spanning sectors such as artificial intelligence, e-commerce, semiconductors, electric vehicles, batteries and advanced manufacturing.The latest list added around 60 companies. Notable inclusions are Alibaba, Baidu, electric-vehicle manufacturers BYD and Nio, as well as Chinese biotech firm WuXi Apptec and robot maker Unitree. Network equipment maker TP-Link and battery makers CALB and EVE Energy have also been designated.
