New Delhi, Feb 14 (NationPress) The US Department of Defence has opted to include several prominent Chinese firms, such as Alibaba and BYD, on a list of companies suspected of having connections to China's military, according to reports. This decision comes just weeks before US President Donald Trump is anticipated to meet Chinese President Xi Jinping in Beijing, potentially heightening tensions between the two nations, as stated by the Financial Times.

The Pentagon has submitted its updated "Chinese Military Companies" list, known as the 1260H list, to the Federal Register last Friday.

However, this document was promptly taken down from the Pentagon's website at their request without any provided reason, the report mentions.

A defence official later indicated that the revised list would be available next week. In addition to Alibaba and BYD, the Pentagon intends to include search engine giant Baidu.

This list, mandated by US Congress, identifies companies that the US believes maintain direct ties to the People's Liberation Army or are engaged in China's military-civil fusion programme, which necessitates firms to share technology with military entities.

Although being listed does not automatically result in legal repercussions for most companies, it can adversely affect their reputation and hint at potential future restrictions.

However, the inclusion of biotechnology company WuXi AppTec could carry more severe consequences, according to the report.

Under the Biosecure Act enacted in December, the US federal government is prohibited from conducting business with biotechnology firms deemed concerning, including those named on the 1260H list.

The Pentagon also added RoboSense, a robotics firm driven by AI, and BOE Technology, known for display panels.

Simultaneously, it unexpectedly removed memory chip manufacturers CXMT and YMTC from the list, a decision that surprised experts who questioned the rationale behind the companies' clearance.

The choice to include Alibaba follows earlier assertions by US intelligence agencies that the company may pose a national security risk.

A memo from the White House reportedly claimed that Alibaba provided technical support for Chinese military operations and granted the Chinese government access to customer data. Alibaba has vehemently denied these allegations, asserting that it is not a military entity and has no involvement in any military-civil fusion strategy.

Baidu and BYD also dismissed the Pentagon’s claims, labeling them as unfounded and baseless.

Both companies have indicated they may pursue legal avenues to contest the decision, as reported.