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The U.S. Pentagon has recently added Alibaba, Baidu, BYD, and UBTECH to its roster of entities purportedly ‘supporting the Chinese military.’ This action is poised to impose further constraints on business collaborations between U.S. corporations and these Chinese companies, and is widely viewed as yet another indicator of the mounting tensions in U.S.-China relations. The Pentagon’s decision to update the list is in line with Section 1260H of the National Defense Authorization Act for Fiscal Year 2021, a measure designed to counter China's strategy of ‘civil-military integration.’ Entities included on this list may encounter various challenges, including potential divestment by U.S. investors, harm to their international reputation, and barriers to overseas market expansion.
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