The U.S. Department of Defense has removed Alibaba, BYD and Baidu from a list of companies deemed to be linked to the Chinese military. The decision, officially announced, also saw the removal of YMTC (Yangtze Memory Technologies Co.) and CXMT (ChangXin Memory Technologies).

Context

The reasons behind this reversal have not been explained in detail. Generally, inclusion on such lists entails export restrictions and difficulties in accessing US technologies and capital. The removal may indicate a change of strategy or a reassessment of the risks associated with these specific companies. The impact of this decision on trade and technology relations between the United States and China remains to be assessed.