US Briefly Names Alibaba, Baidu as Firms Aiding China’s Military

The Pentagon added Alibaba, BYD, Baidu and TP-Link Technologies Co. to a list of companies that aid the Chinese military – before withdrawing it minutes later without explanation. The moves on Friday roiled shares of the affected listed companies and left analysts wondering about the administration’s intentions. If the list is reposted, they said it would be a show of strength ahead of President Donald Trump’s expected trip to China and meeting with Chinese leader Xi Jinping in April. The updated list, which the US Federal Register a short while later declared “unpublished,” also removed two of China’s champions in production of memory chips, ChangXin Memory Technologies Inc. and Yangtze Memory Technologies Co. Asked about the notice, the Pentagon said in a statement to Bloomberg News that “we have nothing to announce at this time.” Bloomberg News Senior Editor for Technology & Strategic Industries Michael Shepard joins Bloomberg Businessweek Daily to discuss. He speaks with Carol Massar and Tim Stenovec. President Donald Trump said that he’s discussing future weapons sales to Taiwan with Chinese President Xi Jinping and teased that he would soon make a decision about future defense support for the self-governing island.

“I’m talking to him about it. We had a good conversation, and we’ll make a determination pretty soon,” Trump told reporters Monday evening aboard Air Force One.

WATCH: President Trump speaks with reporters on Air Force One.

The US’s military support for Taiwan has become one of the key points of contention between Washington and Beijing before the countries’ leaders are slated to meet in April in China.

A Taiwanese Air Force F-16 fighter jet flies during a military exercise in Taiwan on Jan. 28.

China has ramped up political and military pressure on Taiwan in recent years in a bid to reinforce its view that the island is part of its territory.

The two leaders spoke earlier this month in a conversation that Trump heralded as “excellent.” But a Chinese account of the call said that the US must “handle the issue of arms sales to Taiwan with prudence,” unusually specific and direct language for Xi, who normally sticks to broad statements on Taiwan.

The Financial Times reported earlier this month that the US is preparing a new round of arms sales to Taiwan, which has unsettled Chinese officials. The purchase would be in addition to an $11 billion deal announced in December.

The US and Taiwan finalized a trade agreement last week, further linking the two economies. That deal cuts tariff rates, boosts market access for American products in Asia and channels billions of dollars into US energy and technology projects.

--------

Watch Bloomberg Radio LIVE on YouTube

Weekdays 7am-6pm ET

Follow us on X

Subscribe to our Podcasts:

Bloomberg Daybreak

Bloomberg Surveillance

Bloomberg Intelligence

Balance of Power

Bloomberg Businessweek

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:

Apple CarPlay

Android Auto

Visit our YouTube channels:

Bloomberg Podcasts

Bloomberg Television

Bloomberg Originals