Tensions Rise: Trump Administration Targets Chinese Firms
The Trump administration is poised to add companies such as Alibaba to a list of firms allegedly supporting China's military. This move follows a trade truce with China and could affect U.S. procurement policies. Companies like Tencent and CATL are already on the list, sparking concern and legal challenges.
The Trump administration is preparing to designate several companies, including Alibaba, as entities allegedly aiding China's military activities, according to sources close to the situation. This action comes under the Pentagons' 1260H list, a classification that, while not imposing immediate sanctions, restricts future contracts and procurement opportunities with these companies.
Being listed delivers a clear signal to suppliers and U.S. government agencies regarding the Defense Department's stance on these firms. Companies, some of which have legally contested their inclusion, serve as a point of contention with U.S. authorities. Attempts to obtain comments from Alibaba and the Pentagon were met without success.
The decision risks straining Sino-American relations, particularly after October’s trade agreement between President Trump and China's President Xi Jinping. Already on the list are significant Chinese firms like Tencent and CATL, both denying involvement in military operations and seeking to address their listings. Lawmakers recently urged further additions, including AI firm DeepSeek and smartphone maker Xiaomi.
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