US includes BYD and Nio in military list: What does this threaten China's largest automakers with?

The Pentagon has expanded the list of companies that, according to Washington, are linked to the Chinese military-industrial sector

The US Department of Defense has updated the so-called Chinese Military Companies (CMC) list, adding a number of major Chinese companies to it. Among the new entrants are automakers BYD and Nio, as well as battery company CALB. In addition, Alibaba, Baidu, Unitree, and other tech giants were included in the list.

Nio ET9
Nio ET9
Источник изображения: Nio

It is important to understand that this is not about direct sanctions. Inclusion in the list does not prohibit companies from selling cars or batteries on global markets. However, the status creates reputational and financial risks, and also limits the possibility of cooperation with the US Department of Defense. For direct contracts, restrictions will take effect in 2026, and for purchases through intermediaries – from 2027.

For the automotive industry, the news is particularly noteworthy due to the presence of BYD and Nio. The first company is the largest manufacturer of new energy vehicles in China and one of Tesla's main competitors in the global market. Nio, in turn, is considered one of the leaders in premium electric vehicles and fast battery swap technologies.

The decision effectively confirms information that first appeared back in February. At that time, an updated version of the list was published and almost immediately deleted without explanation, which raised questions among analysts and market participants. Now the Pentagon has officially solidified the expanded list of companies.

Chinese authorities have already criticized Washington's actions, calling such measures discriminatory. The companies themselves traditionally deny accusations of ties to military structures.

For the global automotive market, this is another signal that competition between major manufacturers is increasingly going beyond technology and sales. Even companies involved in the production of cars and batteries are increasingly finding themselves at the center of geopolitical and trade disputes.

Read more materials: