US designates Alibaba, Baidu, and BYD as supporters of the Chinese military

Republican Congressman John Moolenaar, chairman of the US House Select Committee on China, described the updated list as a warning to the American economy, all levels of government, and the public. In a statement, he said: "Diese aktualisierte Liste chinesischer Militärunternehmen ist eine Warnung an amerikanische Unternehmen, alle Regierungsebenen und die amerikanische Bevölkerung". He also called on US companies to "keine Geschäfte mehr mit diesen Bedrohungen für unsere nationale Sicherheit zu tätigen".

Inclusion on the list has only limited immediate legal consequences for many of the affected companies. Observers see the move, however, as a possible prelude to more extensive sanctions. Should additional punitive measures follow, the corporations' business activities in the US market and their international supply chains could be severely disrupted.

Alibaba and Baidu push back

Alibaba rejected the designation as a "mistake" and announced legal action. Baidu called the classification as a supporter of the Chinese military "completely unfounded." Both corporations are among the best-known technology companies in China and are publicly resisting the US decision.

Previously, the tech giant Tencent had already been listed as a military supporter of China. In addition, the two chipmakers ChangXin Memory Technologies and Yangtze Memory Technologies, which had been removed from the list in February, have now been added back. As a result, the number of companies covered is growing significantly.

Risk of further sanctions

Tensions between the United States and China are likely to intensify further with the publication of the list. Analysts see the decision as a signal that Washington intends to maintain economic pressure on Beijing, particularly in areas considered strategically relevant to the People's Liberation Army. These include semiconductors, artificial intelligence, robotics, and e-commerce.

Moolenaar emphasized that the list is intended to help American companies better assess risks in their supply chains. The US government hopes this will lead to restrictions on investments and supply contracts with the listed companies, in order to avoid indirectly financing China's military buildup.

Impact on the global economy

International investors and trading partners are watching the developments with concern. Should the list actually trigger further sanctions, this could not only strain bilateral relations between the world's two largest economies, but also severely impact global supply chains in the technology and pharmaceutical sectors.

The ultimate political and economic impact of the listing remains to be seen. What is clear is that with its publication, the US government is sending a clear signal: companies that, in Washington's assessment, are entangled with the Chinese military are to come under greater pressure going forward.