"U.S. Defense Department Considering Adding Alibaba, Baidu to 'Chinese Military-Supporting Companies' List"
Alibaba: "No Basis for Inclusion on the List"
Bloomberg and other outlets reported on November 26 (local time) that the United States Department of Defense is considering adding Alibaba, Baidu, and other companies to its list of "Chinese military-supporting companies."
United States Washington DC Department of Defense Headquarters. Photo by Reuters Yonhap News
View original imageAccording to Bloomberg, Steve Feinberg, U.S. Deputy Under Secretary of Defense, stated in a letter sent to the chairs of the House and Senate Armed Services Committees on October 7 that "after reviewing the latest information, we have identified eight 'Chinese military companies' that should be added to the '1260H List' under the law." The U.S. government compiles and manages a list of Chinese military companies believed to support the Chinese military, in accordance with Section 1260H of the National Defense Authorization Act (NDAA).
The companies Feinberg mentioned are Alibaba, Baidu, BYD, IOptolink Technology, Hua Hong Semiconductor, RoboSense Technology, WuXi AppTec, and Zhongji Innolight. However, Bloomberg added that it has not yet been confirmed whether these companies will be officially included in the list.
This list was last updated in January, and it has not been revised since President Trump took office. Being designated as a Chinese military company does not immediately result in sanctions or export controls, but analysts say it can damage the reputation of the companies involved.
Hot Picks Today
"Could I Also Receive 370 Billion Won?"... No Limit on 'Stock Manipulation Whistleblower Rewards' Starting the 26th
- Samsung Electronics Labor-Management Reach Agreement, General Strike Postponed... "Deficit-Business Unit Allocation Deferred for One Year"
- "From a 70 Million Won Loss to a 350 Million Won Profit with Samsung and SK hynix"... 'Stock Jackpot' Grandfather Gains Attention
- "Stocks Are Not Taxed, but Annual Crypto Gains Over 2.5 Million Won to Be Taxed Next Year... Investors Push Back"
- "Who Is Visiting Japan These Days?" The Once-Crowded Tourist Spots Empty Out... What's Happening?
Alibaba immediately objected, calling the move "baseless." In a statement, Alibaba said, "Alibaba is not a Chinese military company and does not participate in any military-civil fusion strategy." The company also added, "Since Alibaba does not conduct business related to U.S. military procurement, being included in the list will not affect our ability to conduct normal business anywhere in the United States or globally."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
