Pentagon alleges that BYD, despite being a civilian automaker, contributes to China’s defence-industrial base.
PETALING JAYA: Chinese electric vehicle maker BYD has been added to a list of companies Washington believes are linked to China’s military, placing one of the world’s fastest-growing automakers under increased scrutiny.
The Pentagon’s updated Section 1260H list named BYD alongside Alibaba, Baidu, and NIO as among 188 firms deemed to have ties to China’s military. While the designation does not amount to immediate sanctions, Reuters reported that it could restrict future Pentagon procurement. The update comes amid intensifying competition between Washington and Beijing in strategic sectors such as electric vehicles, artificial intelligence, and advanced manufacturing. The Pentagon alleges that BYD, despite being a civilian automaker, contributes to China’s defence-industrial base.
According to the BBC, the list identifies 188 companies deemed by the US to have links to China’s military and serves as a warning to American organisations about the risks of doing business with them. BYD rejected the designation, saying it is “not a military enterprise” and that the decision contradicts the facts. The company said it would defend its rights through available administrative and legal channels.
In Malaysia, Sime Darby Motors launched BYD in December 2022 after being appointed the brand’s official distributor. Last year, the investment, trade and industry ministry said BYD Automotive Malaysia had been granted an interim manufacturing licence to assemble energy-efficient vehicles in Tanjung Malim.
However, investment, trade and industry minister Johari Ghani said BYD had yet to agree to conditions set by the ministry, including a requirement that at least 80% of vehicles produced in Tanjung Malim be exported and the remaining 20% sold locally at prices above RM200,000. The ministry has since said the exemption period for fully imported EVs ended on Dec 31, 2025, and that new conditions will apply from July 1.
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