The U.S. has added Chinese automaker BYD and several others to a list of companies it says have ties with the Chinese military. The Department of Defense's list, which includes e-commerce giant Alibaba, aims to alert U.S. organizations to the risks of doing business with the Chinese firms, but does not go as far as imposing sanctions on working with them, according to BBC News.

The list, known as Section 1260H, was announced in a post on the Federal Register on June 8 and includes some of China's biggest companies, many of which compete directly with major American companies in industries such as electric vehicles and artificial intelligence. 

For example, the 2025 BYD Seagull EV is available starting at just 56,800 yuan ($7,800) in China, according to Electrek, whereas the cheapest EV in the U.S., the Chevrolet Bolt, costs just under $29,000, according to Cars.com. BYD outpaced Tesla as the largest global seller of EVs earlier in 2026, and has plans to move into the Canadian market, while its cars are still effectively banned in the U.S.

BYD’s founder and chair, Wang Chuanfu, said at its annual shareholder meeting June 10 that the company aims to be the world’s biggest automaker within the next five years, rivaling Toyota.

Alibaba's spokesperson said the firm was "not a Chinese military company nor part of any military-civil fusion strategy."

The Chinese embassy in the U.S. told the BBC the list was "discriminatory" and said firms from China have strictly complied with the laws abroad.