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Pentagon adds BYD to list of firms with alleged Chinese military ties

The U.S. Department of Defense added China's largest electric-vehicle maker BYD to its list of firms with alleged military links. The list warns U.S. companies that working with flagged firms could complicate Pentagon contracts. BYD shares traded in Hong Kong lost 5.1 percent.

Container terminal in Shenzhen port under overcast sky
Container terminal in Shenzhen port under overcast skyPhoto: Lin. / Pexels
BBC Asia1 h ago1211.HK
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According to the Pentagon, the addition of BYD brings the total list to 137 firms under scrutiny. AI-equipment maker Cambricon Technologies and subsidiaries of consumer drone maker DJI were also added. The listing is not itself a sanction but acts as a risk flag for federal procurement and Pentagon contact channels. It is separate from the U.S. Commerce Department's export-control list.

BYD said in a Hong Kong filing that it found the decision unfounded and that it was not engaged in military activity or relationships. The company said it reserved the right to challenge the Pentagon's decision in court. Its shares closed 5.1 percent lower in Hong Kong at HK$110. The Hang Seng Auto index fell 2.8 percent.

Chinese Foreign Ministry spokesperson Mao Ning, at a weekly briefing in Beijing, called the move an unequal interference. China's Ministry of Commerce said it was assessing retaliatory measures. JPMorgan analysts wrote that the decision did not directly affect BYD's European operations but would keep mid-term pressure on the U.S. market high. Not investment advice.

GeopoliticsTradeRegulation1211.HKAsiaBBC Asia
Source: BBC Asia
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This article is an AI-curated summary of the original story published by BBC Asia. The illustration is a stock photo by Lin. from Pexels and is not from the original story.

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