US Removes Updated List of Firms Supporting China's Military

The US Reverses Its Decision to Add Chinese Tech Giants to Military List

The United States recently removed an updated list of Chinese companies suspected of supporting Beijing's military efforts, just hours after it was published. This list included some of the largest Chinese corporations, such as Alibaba and Baidu. The removal occurred shortly after the Pentagon's 1260H list was posted on the Federal Register, a government publication.

The link to the document was replaced with a "withdrawn" notice approximately one hour after it was made public. According to a statement from the Federal Register, an agency letter requesting the withdrawal of the document was received after it had been placed on public inspection. However, no specific reason was given for the decision.

The Pentagon has not yet provided any official comment on the matter. Despite this, the initial release of the list signaled a potential shift in U.S. policy regarding its relationship with Chinese technology firms.

Impact of the New Law on Contracting with Listed Companies

Although the list does not officially impose sanctions on the listed companies, a new law is set to take effect that will prevent the Department of Defense from contracting or procuring goods and services from these firms in the coming years. This could have significant implications for companies like Alibaba, Baidu, and others that are heavily involved in the U.S. market.

The move also sends a strong message to U.S. government agencies and suppliers about the military's stance on these companies. Some of the firms on the list have already taken legal action against their inclusion, arguing that they do not support China's military activities.

Alibaba, for instance, issued a statement denying any connection to the Chinese military. The company claimed there was no basis for its inclusion on the list and warned of potential legal action. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," the spokesperson said.

Additional Companies Added and Removed from the List

In addition to Alibaba and Baidu, other companies were added to the list on Friday. These include BYD, a major automaker; WuXi AppTec, a biotech firm; and RoboSense Technology Co Ltd, an AI-driven robotics company. However, YMTC, a chip memory maker, was removed from the list.

This update comes at a time when the U.S. and China are working to maintain a trade truce following a meeting between President Donald Trump and Chinese leader Xi Jinping in October. Although Trump is expected to visit China in April, the exact dates for the trip have not been finalized.

Implications for U.S.-China Relations

The inclusion of these companies on the list could strain relations between the two countries, especially given the recent trade agreement. The U.S. government's actions may be seen as a challenge to China's growing influence in the tech sector.

Other major Chinese firms, such as Tencent Holdings and CATL, are already on the list. These companies represent key players in the global technology and automotive industries, making their inclusion a significant development in U.S.-China trade dynamics.