The US Department of Defense proposes adding Alibaba, Baidu, and BYD to the list of companies it believes pose a threat to national security due to their ties to the Chinese government. Reuters reports this, according to UNN.
Details
The Pentagon concluded that Alibaba Group Holding, Baidu Inc, and BYD Co should be added to the list of companies that assist the Chinese military.
Deputy Secretary of Defense Stephen Feinberg informed lawmakers of the decision in an October 7 letter, three weeks before Presidents Donald Trump and Xi Jinping agreed to a broad trade truce.
It is currently unclear whether these companies have been added to the Pentagon's 1260H list of Chinese companies deemed to be linked to military activities but operating in the US.
While such a designation does not entail immediate prohibitions, it can damage the reputation of affected companies and serves as a stern warning to American organizations and firms about the risks of doing business with them.
Recall
A bipartisan bill aimed at imposing sanctions on Chinese companies that provide material support for Russia's military aggression in Ukraine has been reintroduced in the United States House of Representatives.