The Pentagon just blacklisted tech giant Alibaba and electric car maker BYD. Here’s why

The Pentagon has added several prominent Chinese businesses, including the tech giant Alibaba, electric car maker BYD and search engine Baidu, to its list of Chinese military companies, preventing them from getting U.S. defense contracts.The list, updated and published Monday by the Pentagon, now sanctions well-known, non-state-owned Chinese companies that are not traditionally considered to be in the defense or security sector. It reflects growing wariness of Beijing’s strategy of tapping the strength of non-state businesses for military purposes.Created in 2021 by a congressional mandate, the list seeks to identify Chinese companies that the Pentagon considers to have links to the Chinese military — not only those directly controlled by the Chinese military and security forces but also those contributing to the country’s defense industrial base.When updating the list last year, the Pentagon said the Chinese military sought to acquire advanced technologies and expertise developed by Chinese companies, universities and research programs that “appear to be civilian entities.”The Chinese Embassy on Monday accused the U.S. of “overstretching the concept of national security and making discriminatory lists to go after Chinese companies.” It said Chinese companies observe the laws and regulations of the countries where they do business. “The U.S. should stop its wrong practice and create a fair, just and non-discriminatory environment for Chinese companies,” the embassy said in a statement.Alibaba, BYD and Baidu said there is no basis for including them on the list. “Alibaba is not a Chinese military company nor part of any military-civil fusion strategy,” a statement from the leading e-commerce company said. Baidu, which has expanded into artificial intelligence and self-driving taxis, said the suggestion that it is a military company is “entirely baseless.”BYD said in a statement it is “not a