U.S. Adds NIO and Other Chinese Firms to "Chinese Military Companies List"; NIO Denies Military Ties

The U.S. Department of Defense recently updated its “Chinese Military Companies” (CMC) list, adding a total of 188 Chinese entities, including private enterprises such as NIO, BYD, Alibaba, Baidu, CALB (China Aviation Lithium Battery), and WuXi AppTec. In response, NIO issued a statement clarifying that it is not a Chinese military company and has not participated in any civil-military integration projects. The company emphasized that inclusion on the CMC list does not constitute a sanctions designation and will not affect its business operations or securities trading. NIO stated it will actively engage with the U.S. Department of Defense and, if necessary, pursue legal action to protect its rights. Meanwhile, Sidewalk Labs launched a new AI-powered automotive brand, AIVA. Its first mass-production model, the AIVA ME7, is scheduled for market launch later this year, offering both battery-electric and extended-range variants priced between RMB 100,000 and RMB 200,000. The vehicle will be manufactured at Seres’ Phoenix Factory, featuring an intelligent cockpit powered by Doubao large language models and advanced driver-assistance systems based on DeepRoute.ai’s solution. Chery Automobile signed a strategic cooperation agreement with Yinwang Intelligent Technology Co., Ltd., focusing on the joint development and mass production of Level 3 (L3) and Level 4 (L4) autonomous driving technologies. Changan Automobile has listed for sale its entire 40% stake in Changan Ford New Energy, with a minimum asking price of RMB 154 million. The joint venture ceased accepting orders for Ford-branded vehicles and after-sales services starting October 2025, and reported revenue of only negative RMB 102,900 in the first four months of 2026. BYD announced that its Hungary factory will begin production in Q4 2025—delayed from the original target of year-end 2025. The company has also suspended its planned manufacturing facility in Turkey to concentrate resources on advancing localized production in Europe. Dana Incorporated reached an agreement with Eaton Corporation to combine Eaton’s mobility business with Dana. The combined entity is valued at approximately USD 10 billion. Following the transaction, Eaton will focus exclusively on its electrical and aerospace businesses and receive a cash distribution of roughly USD 1.1 billion.