The United States Department of Defense has placed BYD on the Pentagon military list known as Section 1260H, alongside Alibaba, Baidu and a range of other major Chinese companies said to have ties with China’s military. The list was announced in a post on the Federal Register on Monday.
According to The Next Web, the updated 1260H list now names 188 companies that the Pentagon identifies as operating in the United States and contributing to China’s military-civil fusion strategy. That total is a substantial expansion of the roster, which had previously included firms such as Huawei, Tencent, drone producer DJI and battery maker CATL.
The Department of Defense’s list is designed to alert American organisations to the risks of doing business with the named Chinese firms. Inclusion does not trigger immediate sanctions, but the designation carries reputational and commercial weight for any company doing business in or with the United States.
BYD Pentagon military list: which companies are named
Alibaba, BYD and Baidu were among the companies described as serving as military-civil contributors to Chinese defence operations. The list also includes electric vehicle manufacturer Nio and aircraft manufacturer Comac. The Next Web also reports that robotics company Unitree was added in this round of updates, extending the list’s reach into an emerging hardware sector.
The Pentagon’s list names more than 80 companies directly or indirectly engaged in providing commercial services in the United States. Some compete directly with major American firms in sectors including electric vehicles and artificial intelligence.
BYD does not currently export its cars to the US, yet the company surpassed Tesla earlier this year to become the world’s top EV maker. Its inclusion on the 1260H list adds a layer of political friction to any future market-entry ambitions in North America, even though the designation is not a trade ban in itself.
Responses from listed firms
The Chinese embassy in Washington told the BBC the list is ‘discriminatory’ and stated that Chinese firms have strictly complied with laws abroad. Alibaba’s representatives said separately that ‘there is no basis’ for their inclusion. An Alibaba spokesperson went further, stating the firm is ‘not a Chinese military company nor part of any military-civil fusion strategy’ and warning: ‘We will take all available legal action against attempts to misrepresent our company.’
A Baidu spokesperson said there is ‘no credible justification’ for its inclusion and that it will ‘use all options available’ to have its name removed. The BBC contacted BYD and several other listed firms for comment.
The US appears to have flagged these companies for participation in state programmes rather than on the basis of clear evidence of contracts with the Chinese military, according to policy analyst Stefanie Kam from the Nanyang Technological University. Beijing will likely view the move as a ‘form of economic containment’, Kam said.
Geopolitical stakes and possible retaliation
The publication of an expanded BYD Pentagon military list risks aggravating tensions between Washington and Beijing at a moment when trade friction between the two economies is already elevated. China could possibly retaliate with tit-for-tat sanctions, add American firms to a list of its own, or respond with some form of diplomatic pushback, Kam said.
The precedent set by Huawei is instructive. In 2019, Washington barred US firms from doing business with Huawei over national security concerns linked to its equipment. Huawei has denied that its products present security risks and maintains that it is independent from the Chinese government. That dispute has dragged on for years without resolution, and the firms newly added to Section 1260H may be bracing for a similarly protracted process.
Alibaba has signalled it will pursue legal routes. With 188 companies now named, the scale of the list means pressure on Washington’s legal and diplomatic bandwidth is likely to grow alongside it.
