US blacklists Chinese companies for providing aid to their military:Alibaba, BYD, Xiaomi and 97 others feature on hit list

The United States has included giant Chinese tech and automobile companies like Alibaba Group, Baidu, and BYD in the list of ‘Chinese Military Companies’. According to the US Department of Defense (Pentagon), these companies assist the People’s Liberation Army (PLA), i.e., the Chinese military, and security agencies there. The United States has placed more than 100 Chinese companies on this blacklist under Section 1260H of the National Defense Authorization Act (NDAA). What is America’s Section 1260H and its impact? What is this law: Section 1260H of the US National Defense Authorization Act (NDAA) gives the US Department of Defense the power to identify and list those Chinese companies that operate commercially in the United States but are strengthening the Chinese military in the backend. Why Listed: The United States fears that China is using civilian and commercial technologies to modernize and weaponize its military under its ‘Military-Civil Fusion’ policy. What is the Impact: After being included in this list, these companies face an increased threat of various types of American sanctions directly. American companies and investors hesitate to invest in these companies, and their global supply chains and business operations are severely affected. Crackdown on Major Companies like Alibaba, Tencent and Xiaomi This new list issued by the Pentagon includes giant companies from almost every major sector of China. These include e-commerce platform Alibaba, search engine and AI sector major Baidu, and BYD, one of the world’s largest electric vehicle manufacturing companies. Apart from these, this list also includes battery manufacturing company CATL, gaming and social media giant Tencent, telecom company Huawei, and drone manufacturing company DJI. Along with this, infrastructure and networking device maker TP-Link, robotics firm Unitree, surveillance camera manufacturer Hikvision, and shipping giant COSCO Shipping are also included in this list. China’s major telecom operators such as China Mobile, China Telecom, and China Unicom have also been added to it due to their connections with the military. Pentagon cited connections with Chinese government ministries and military The U.S. Department of Defense has cited concrete legal and strategic reasons for listing these companies. The Pentagon says that these companies are directly or indirectly connected to China’s government apparatus and military institutions. The official document specifically mentions the ‘State-Owned Assets Supervision and Administration Commission’ (SASAC) and the ‘Ministry of Industry and Information Technology’ (MIIT). Additionally, America has claimed these companies have connections with China’s State Administration for Science, Technology and Industry for National Defense (SASTIND) and China’s main military, the People’s Liberation Army (PLA), as well as the People’s Armed Police and Chinese intelligence and law enforcement agencies. America’s Focus on China’s ‘Little Giant’ and ‘Single Champion’ Programs The Pentagon’s notification has clarified that these companies are participating in several major programs of China’s strategic technological development. These include China’s ambitious schemes like ‘Little Giant’ and ‘Single Champion’. Washington believes that Beijing is developing advanced technologies through these government schemes to surpass America in terms of technology and to use these technologies in defense and military preparations. Companies Can Appeal to Get Off the List The US Department of Defense has also made it clear in this official document that if any company feels it has been wrongly included in this list, it can challenge this decision. The Pentagon has issued a proper process and guidelines for this. Listed companies can present evidence in their defense and appeal for reconsideration to have their names removed.