The BYD Pentagon military list expanded significantly on 6 January 2025, when the US Department of Defense published its latest update to the Section 1260H register, adding electric car maker BYD, technology giant Alibaba and tech giant Baidu among a fresh cohort of Chinese companies identified as contributing to China’s military-civil fusion strategy.
The list, published as a post on the Federal Register, now names 188 companies that the Pentagon identifies as operating in the United States and contributing to China’s military-civil fusion strategy, according to The Next Web. Inclusion on the register does not trigger immediate sanctions, but it is intended to alert American organisations to the risks of doing business with the listed firms.
The Chinese embassy in the US told the BBC that the list is “discriminatory” and said firms from China have strictly complied with the laws abroad. The BBC has contacted BYD and several other firms on the list for comment.
What the BYD Pentagon military list update adds and removes
The January update brought 17 new entities onto the register while removing three from the prior version, according to Akin Gump Strauss Hauer & Feld. An earlier tally published by Hogan Lovells placed the total at 134 entities spanning sectors including artificial intelligence, aerospace and biotechnology, a figure that differs from The Next Web’s count of 188. The discrepancy likely reflects different methodologies for counting related or subsidiary entities, though neither source elaborates further.
The register now covers more than 80 companies described as “Chinese military companies” directly or indirectly engaged in providing commercial services in the United States. Companies accused of serving as a military-civil contributor to Chinese defence operations include Alibaba, BYD and Baidu. Other electric vehicle makers and technology firms on the list include Nio and aircraft manufacturer Comac.
Tech giants Tencent and Huawei, drone producer DJI and battery maker CATL, which were added in previous rounds, remain on the register. Huawei has denied claims that its products present security risks and says it is independent from the Chinese government. In 2019, Washington barred US firms from doing business with Huawei over national security concerns linked to its equipment.
Industry pushback and geopolitical risk
Alibaba’s representatives said there is no basis for their company to have been listed. An Alibaba spokesperson stated the firm is “not a Chinese military company nor part of any military-civil fusion strategy,” adding: “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 the company will “use all options available” to have its name struck off.
The US appears to have flagged these companies for their participation in state programmes rather than based on clear evidence of contracts with the Chinese military, said policy analyst Stefanie Kam from the Nanyang Technological University. Beijing will likely view the move as a “form of economic containment,” Kam said. 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, according to Kam.
The commercial stakes are not trivial. BYD surpassed Tesla earlier this year to become the world’s top EV maker, though it does not export its cars to the United States. Some of the listed businesses compete directly with major American companies across electric vehicles and artificial intelligence. The Section 1260H register, as it continues to expand across sectors including biotechnology and aerospace, is increasingly shaping how US organisations assess supply chain and partnership exposure to Chinese counterparts.
