The BYD logo at the Beijing Auto Show venue in April 2026. Credit: CnEVPost
- BYD said its inclusion in the list of Chinese military companies is unjustified and will not affect normal operations.
- The Pentagon has targeted the Chinese EV supply chain, sparking criticism regarding the rationality of the decision.
BYD (HKEX: 1211) has responded to its inclusion in a US Department of Defense (DOD) list of Chinese military-linked companies, stating that the designation is unjustified and will not disrupt its normal business operations.
In a Hong Kong Stock Exchange filing released on Tuesday, BYD said that it is neither a Chinese military company nor a military-civil fusion contributor totheChinese defense industrial base.
The Shenzhen-based company said that the list of Chinese military companies is not a sanctions list.
It added that the designation will not prohibit anyone other than the US DOD from conducting business with the group.
Furthermore, the US government procurement restrictions associated with the list will not affect BYD’s business, nor do they restrict trading in the company’s securities.
BYD said it may initiate a review process. If necessary, it may take legal action to seek the company’s removal from the list.
In a list published on Monday, the US DOD accused several top Chinese companies of supporting the Chinese military.
In addition to BYD, the Pentagon also included Nio Inc (NYSE: NIO) and major battery manufacturers CATL (HKEX: 3750), CALB (HKEX: 3931), and Eve Energy (SZSE: 300014) on the list.
Nio responded earlier today, similarly stating that the list is not a sanctions list and will not affect its business or securities trading.
John McEntee, a former senior Trump White House official who lobbies for Tencent Holdings (HKEX: 0700), criticized the decision.
He said that expanding the list to include car companies like BYD and Nio exposes how ridiculous the justification is, according to a Bloomberg report.
McEntee added that, following the Pentagon’s logic, Ford and General Motors should also be classified as US military companies.
Also affected are key hardware suppliers for autonomous driving technology, such as LiDAR makers Hesai Group (NASDAQ: HSAI) and RoboSense (HKEX: 2498).
Although the list carries few immediate legal consequences, it restricts these companies from securing US military contracts.
The publication of the list comes less than a month before US president Donald Trump visits China to discuss trade issues.
Critics argue that expanding the list to car companies like BYD and Nio reveals how ridiculous the justification is.
