Source: Fortune
Summary
The Pentagon has accused several major Chinese companies, including Alibaba, Baidu, and BYD, of supporting the Chinese military, adding them to a list of companies deemed a threat to US national security. The list, known as the 1260H list, was updated on Monday and includes nearly 200 companies, many of which are among China’s most prominent. The designation carries few immediate legal repercussions but can restrict companies’ abilities to contract with the US military or receive research funding. The Chinese embassy in Washington had no immediate comment.
Our Reading
The numbers tell one story.
The Pentagon’s list of Chinese military companies operating in the US has grown to nearly 200, with Alibaba, Baidu, and BYD among the newest additions. The list has significant implications for US-China trade tensions, particularly in the tech sector. The designation of BYD, China’s top electric-vehicle company, is notable, as is the reinstatement of two Chinese memory chipmakers, ChangXin Memory Technologies and Yangtze Memory Technologies. The move is seen as a post-summit reality check after the Trump-Xi meeting failed to yield significant easing in tensions over advanced technology.
With this list, the US is sending a clear message to China: collaboration with the country’s armed forces will have consequences.
Author: Evan Null
