Bloomberg: US adds Alibaba, BYD to list of companies supporting Chinese military

The United States has added several Chinese companies to a list of firms deemed to be supporting the Chinese military, Bloomberg reports.

The Pentagon identified Alibaba Group, Baidu, and BYD as providing support to China’s armed forces. The electric vehicle manufacturer, search engine operator, and e-commerce platform will not face direct sanctions at this stage; however, their inclusion on the list serves as a warning to investors and could lead to indirect restrictions. These may include reputational damage, limits on U.S. defense contracts, and increased regulatory costs.

Analysts note that this move could complicate Donald Trump’s upcoming visit to China and his talks with Xi Jinping, including discussions over the export of Nvidia chips to China, in which Alibaba has an interest.

Following the Pentagon announcement, Alibaba shares fell 5 percent, while Baidu shares dropped 4.5 percent.

By Vugar Khalilov