Pentagon Adds Alibaba, BYD, Others to Chinese Military Companies List
The Pentagon added Chinese e-commerce company Alibaba, electric carmaker BYD, Internet search provider Baidu and others to an updated version of its 1260H Chinese military companies list released June 8. Other companies added include Chinese Robotics company Unitree along with RoboSense and WuXi AppTec. The updated list is similar to the one the agency briefly released in February before it was withdrawn with no explanation (see 2602140001).
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The Pentagon notice also said 10 entities are being removed from the list. The agency's notice in February had included plans to delist ChangXin Memory Technology (CXMT) and Yangtze Memory Technologies Corp. (YMTC), although both remain on the latest list.
YMTC and CNOOC are also on the Commerce Department's Entity List. YMTC is currently challenging its listing in federal court (see 2605280017).
Companies on the 1260H List face certain government contracting restrictions. Lawyers and companies also view companies on the list as compliance risks because of the potential for them to be added to more punitive U.S. restricted party lists.
House Select Committee on China Chairman John Moolenaar urged U.S. companies to stop doing business with entities that were added to the list. “Otherwise, they are enabling China’s military ascendance,” he said in a statement.