BYD has pushed back against its designation on a US Department of Defense blacklist, issuing a formal denial to the Hong Kong Stock Exchange. The company described the listing as unfounded and said it does not operate as a Chinese military company.
The automaker's statement follows similar pushback from NIO, which also contested its inclusion on the same list. The Pentagon's list, maintained under Section 1260H of the National Defense Authorization Act, names entities the US believes are tied to China's military. BYD's denial seeks to distance itself from that characterization.
BYD is already facing scrutiny in Western markets. The EU recently imposed tariffs on Chinese EV imports, and the US has levied a 100 percent tariff on Chinese-made electric vehicles. A defense-related blacklist could further complicate BYD's efforts to expand globally, particularly in sensitive supply chains.
Beijing has rejected the Pentagon's list as a form of economic coercion. For BYD, the designation threatens not just its reputation but also potential procurement contracts and investor sentiment. The company's stock responded with modest volatility following the news.
It remains unclear whether the Defense Department will revise its list or respond substantively to BYD's refutation. The episode underscores the deepening friction between Chinese industrial giants and US national security policy.