The Department of Defense filed and then withdrew a notice that would have added BYD and other Chinese companies to its Section 1260H list of Chinese military companies, according to the Federal Register.
The Section 1260H list identifies Chinese military companies operating directly or indirectly in the United States, a designation that can affect federal contracting eligibility and broader business relationships.
The withdrawn notice identified BYD as a military-civil fusion contributor tied to China’s Ministry of Industry and Information Technology and described it as operating within a military-civil fusion enterprise zone. The list also included 68 entities across the semiconductor, biotechnology and battery sectors, including Alibaba and Baidu, before it was removed without explanation.
The Department of Defense separately designated Contemporary Amperex Technology Co. Limited (CATL) as a Chinese military company under the same Section 1260H list in January 2025, according to the department.
CATL’s battery technology has been used in automotive supply chains, including lithium iron phosphate technology licensed by Ford for a battery plant in Marshall, Michigan. The department also reported that Ford has used BYD-supplied batteries in vehicles sold in overseas markets.
Under Section 805 of the fiscal 2024 National Defense Authorization Act, the Department of Defense is prohibited from entering into contracts with entities listed under Section 1260H beginning June 30. As of January 2025, the list included more than 140 Chinese military companies. The withdrawn filing would have expanded that list by 68 additional entities.
The Department of Defense oversees the U.S. armed forces and coordinates national security functions across federal agencies. The Section 1260H list was established under the fiscal 2021 National Defense Authorization Act to identify Chinese military companies operating directly or indirectly in the United States.
