BYD, NIO Among Chinese EV and Auto Firms Added to U.S. "Chinese Military Companies" List

On June 8, 2026, the U.S. Department of Defense updated its “List of Chinese Military Companies” pursuant to Section 1260H of the National Defense Authorization Act (NDAA), adding two new energy vehicle manufacturers—BYD and NIO—as well as several automotive supply chain companies, including Contemporary Amperex Technology Co. Limited (CATL), CALB, EVE Energy, Hesai Group, and RoboSense. On the same day, BYD issued a statement on the Hong Kong Stock Exchange clarifying that it is neither a Chinese military company nor a military-civil fusion enterprise, and stated that its inclusion on the list lacks valid justification. BYD emphasized that this list does not constitute a sanctions list and therefore does not affect its normal business operations or commercial dealings with entities other than the U.S. Department of Defense. The company further noted that the associated U.S. government procurement restrictions would have no material impact on its business and that the listing imposes no restrictions on trading of its securities. Also on the same day, NIO released a similar announcement on the Hong Kong Stock Exchange, asserting that it is neither a Chinese military company nor involved in military-civil fusion activities related to the defense industrial base, and that its inclusion on the list is without reasonable basis. NIO stressed that the list does not amount to sanctions, that the relevant U.S. government procurement restrictions will not affect its business operations, and that there are no limitations on trading of its securities. NIO stated it will actively engage with the U.S. Department of Defense and, if necessary, pursue legal remedies to protect the rights and interests of the company and its shareholders. Both companies indicated they will continue monitoring developments closely and take appropriate measures as needed.