0
A visitor walks past an Alibaba booth at the 3rd China International Supply Chain Expo in Beijing, China, on July 18, 2025. / AP-Yonhap News

The U.S. Department of Defense has revised its list of Chinese companies allegedly supporting the Chinese military and added around 20 new firms, the Wall Street Journal reported on Monday (local time).

The updated “Chinese military-linked companies list,” revised annually by the Pentagon, has expanded compared with previous years. U.S. national security officials assess that Beijing is leveraging advanced technologies from the civilian sector to enhance its military capabilities.

The newly added firms include electric vehicle maker BYD, pharmaceutical company WuXi AppTec, and humanoid robotics firm Unitree, alongside several technology and consumer-facing companies. Major tech firms such as Alibaba and Baidu were also included due to their roles in e-commerce, cloud computing, search services and artificial intelligence development.

Christopher McGuire, a fellow at the Council on Foreign Relations and a former U.S. State Department and National Security Council official, said the move shows Washington is increasingly viewing not only semiconductors and AI but also broader industrial sectors as potential security risks.

China strongly protested the decision. A spokesperson at the Chinese Embassy in Washington said the Pentagon was “overextending the concept of national security” and issuing discriminatory lists targeting Chinese firms.

The announcement comes amid continued attention on the Trump administration’s China policy. The United States has recently been described as taking a more restrained approach to sanctions, tariffs and cyber-related investigations targeting Chinese firms. An earlier version of the list reportedly scheduled for release in February was withdrawn ahead of a U.S.-China summit.

Despite recent diplomatic engagement, the Pentagon continues to view China as a primary military competitor. Craig Singleton of the Foundation for Defense of Democracies said that while trade tensions may have eased slightly after the summit, Washington’s underlying assessment linking major Chinese civilian tech firms to military modernization remains unchanged.

Companies placed on the list are prohibited from doing business with the U.S. military. While the direct commercial impact varies, firms may face broader reputational and market effects. For example, DJI, added in 2022, has maintained a strong position in the U.S. drone market despite its designation.

                                                                                                            Lee Jung-eun