KATHMANDU: The US Department of Defense has added Chinese EV maker BYD to its list of companies it considers linked to the Chinese military.
The updated Section 1260H list now includes 188 firms. Along with BYD, companies like Nio, Alibaba, Baidu, and Tencent are also listed.
Being included on the list does not bring immediate sanctions. However, it may affect business operations in the US. It can discourage American firms from working with listed companies and limit future opportunities.
BYD currently does not sell passenger cars in the US. However, it manufactures and supplies electric buses from its facility in California.
The Pentagon said companies were added due to links with Chinese state bodies. These include the State-owned Assets Supervision and Administration Commission and the Ministry of Industry and Information Technology. It also cited China’s “civil-military fusion” policy.
BYD has strongly denied the allegations. The company said it has no connection with the Chinese military and called the claims baseless.
The Chinese embassy in Washington described the list as discriminatory. It urged the US to provide a fair environment for Chinese companies operating overseas.
BYD has also indicated that it may take legal action. Company executives said they will use all legal means to defend against what they describe as false claims.
Despite the listing, the immediate business impact remains limited. However, it could affect BYD’s reputation and future expansion in the US market, according to global media reports.
