"U.S. Defense Department likely to add Alibaba and other Chinese firms to list over 'suspected support for China's military'" [Reuters]
Summary
- It reported that the U.S. Defense Department plans to add leading Chinese companies, including Alibaba, to the “1260H list.”
- It said that inclusion on the “1260H list” could, under future legislation, restrict contracting with or raising funds for the relevant companies.
- It projected that this list update could again have a negative impact on U.S.-China relations.
Forecast Trend Report by Period
"Signs of renewed U.S.-China tensions"
The Pentagon is expected to add prominent Chinese companies to a list of firms suspected of aiding China’s military capabilities.
On the 13th (local time), Reuters, citing sources, reported that the Donald Trump administration plans as early as the 14th to add major Chinese companies, including Alibaba, to the “1260H list.”
The “1260H list” targets companies suspected of links to the Chinese military and does not currently impose official sanctions. However, under future legislation, contracting with or raising funds for the listed companies could be restricted.
According to Walter Bloomberg, the list is also expected to include BYD, Baidu, COSCO, Huawei and NIO, in addition to Alibaba.
Alibaba and the U.S. Defense Department did not issue official statements.
Reuters projected that “although Chinese President Xi Jinping and U.S. President Trump reached a trade truce agreement in October last year, this list update could again have a negative impact on U.S.-China relations.”
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