PEAK MEDIA, WASHINGTON – Tensions between the United States and China are heating up again. This time, the US government made a move that has the potential to trigger a new round of economic war by including a number of giant Chinese companies, including Alibaba and BYD, on the list of companies accused of having ties to the Beijing military.
This decision immediately attracted world attention because the companies on the list were not small players. They are giants who control various strategic sectors ranging from electric vehicles, artificial intelligence, digital technology, to aviation.
Washington’s move raises a big question: is this just a national security warning, or the beginning of a new escalation of competition between the world’s two largest economic powers?
BYD and Alibaba are in the spotlight
The name that attracts the most attention is BYD. This automotive company from China is currently enjoying extraordinary growth and has even managed to overtake Tesla as the largest electric vehicle manufacturer in the world in early 2026.
Interestingly, in Indonesia, BYD is also one of the electric car brands with the highest sales.
Automotive industry data shows that vehicles made by this company are increasingly in demand by Indonesian consumers because of competitive prices and continuously developing technology.
Apart from BYD, the US government also included Chinese e-commerce and technology giant Alibaba on a list known as Section 1260H.
In the document, the US Ministry of Defense said a number of Chinese companies were considered to have links to Beijing’s defense and military interests.
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188 Companies Registered
In total, there are 188 companies labeled as “Chinese Military Companies” or companies deemed to have ties to the Chinese military.
The list includes various big names that have dominated the global market.
Apart from Alibaba and BYD, there are also:
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Baidu
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Tencent
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Huawei
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DJI
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CATL
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Nio
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Comac
While not automatically subject to sanctions, the list serves as a warning to investors, contractors and US government agencies about the potential risks of working with these companies.
China Accuses US of Discrimination
The Chinese government is not remaining silent. The Chinese Embassy in Washington considered this move to be a discriminatory act that had no solid basis.
According to Beijing, Chinese companies operate in accordance with international law and cannot simply be linked to military activities just because they participate in national programs.
A strong statement also came from Alibaba.
The company emphasized that it is not a military company and is not involved in the civil-military fusion strategy that has been one of the concerns of the US government.
Alibaba even opened up the opportunity to take legal action to fight this decision.
Baidu also expressed similar objections and assessed that there was no credible basis for including their name on the list.
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Counter Threat from Beijing
A number of analysts assess that Washington’s decision has the potential to worsen relations between the two countries, which in recent years have been characterized by trade wars, technological restrictions and geopolitical competition.
International policy observer from Nanyang Technological University, Stefanie Kam, believes that China will most likely see this step as a form of economic containment against their national companies.
According to him, Beijing has the opportunity to respond by creating a similar list of American companies or taking diplomatic steps as a form of protest.
If that happens, the world could witness a new escalation in the US-China economic competition which has been affecting global supply chains, the technology industry and international financial markets.
Not the First Time
This is not the first time Washington has taken tough steps against Chinese technology companies.
In 2019, the US imposed major restrictions on Huawei citing national security.
At that time, the US government accused Huawei’s telecommunications equipment of potentially being used for espionage purposes.
Huawei denies these accusations and emphasizes that it is an independent company that is not controlled by the Chinese government.
Now, with the inclusion of Alibaba, BYD, Baidu and a number of other giants on the Pentagon’s latest list, many people believe that the competition between Washington and Beijing has entered a broader phase.
It is no longer just a trade war, but a battle for technological dominance, electric vehicles, artificial intelligence and the future of the global economy.
And if the two countries continue to retaliate against each other, the impact will not only be felt in the US and China, but also in other countries that have been dependent on these two economic giants, including Indonesia ***
