SouthernWorldwide.com – Democrats have accepted millions of dollars in campaign contributions from top employees at companies recently identified by the Pentagon as “Chinese military companies” operating within the United States. This influx of funds has raised questions and drawn criticism, particularly given the nature of these designations.
Prominent political figures and organizations that have received donations from employees of these designated firms include Senator Adam Schiff, Representative Nancy Pelosi, former President Joe Biden, Governor Gavin Newsom, former Vice President Kamala Harris, and the Democratic National Committee.
The donors from these three firms—Alibaba, Baidu, and BYD—comprise a range of individuals, including executives, high-level legal professionals, lobbyists, and, to a lesser extent, employees in roles such as engineering or management. While these staffers also made some contributions to Republican committees, the total amount was significantly lower compared to what Democrats received.
A comprehensive review of campaign finance filings revealed that these contributions included direct donations, earmarked contributions, and contributions to joint-fundraising committees. Notably, the review did not identify any direct corporate donations from Alibaba, Baidu, or BYD to federal committees.
Critics argue that individuals associated with these companies should be disconnected from U.S. political funding due to their alleged support for the People’s Liberation Army (PLA). The Pentagon’s designation of these entities as “Chinese military companies” under its 1260H list does not function as a traditional sanction, meaning American citizens and businesses can still engage in business with them.
Committees and joint fundraising vehicles associated with President Biden were the most substantial recipients of these funds, collecting approximately $850,000 from employees of the three firms between 2020 and 2024. The Democratic National Committee (DNC) received around $500,000, while committees linked to Vice President Harris garnered approximately $140,000.
Several state Democratic parties also received significant financial support, in the five-figure range, from employees of Baidu, BYD, and Alibaba. Governor Gavin Newsom, according to state campaign finance records, accepted $50,000 from an executive at BYD, an electric vehicle manufacturer that his administration later awarded a contract to.
Pentagon officials are mandated by law to annually publish a list of companies they identify as Chinese military companies. The inaugural list was released in June 2021 during President Joe Biden’s administration.
The Pentagon’s 1260H list specifically identifies Chinese companies that the Department of Defense asserts are “Chinese military companies” operating either directly or indirectly within the United States. This list, mandated by the 2021 National Defense Authorization Act, aims to alert U.S. businesses and investors about firms connected to China’s military-civil fusion strategy. However, inclusion on the list does not automatically impose sanctions.
Recent defense legislation has, however, increased the impact of this list. Beginning June 30, the Pentagon will be prohibited from entering into direct contracts with companies listed. Furthermore, there is a current ban on contracting with entities that lobby on behalf of companies on the 1260H list. By 2027, this prohibition is set to expand, preventing the indirect procurement of goods manufactured by Chinese military companies through supply chain intermediaries.
Although Alibaba, Baidu, and BYD have only recently been formally designated as Chinese military companies, their affiliations with the Chinese Communist Party (CCP) have been a subject of widespread reporting for years.
For instance, The Wall Street Journal reported in 2017 that Alibaba was reportedly assisting the Chinese government in its surveillance activities targeting dissidents. Chinese state media also reported in 2018 that the firm had a substantial CCP presence within its organization. Some sources within Alibaba reportedly informed Reuters in 2019 that the company had developed an application specifically designed to enhance ideological alignment with Chinese President Xi Jinping.
Alibaba has strongly contested its inclusion on the Pentagon’s list of Chinese military companies. This stance was reiterated in a statement that was also included in a filing made by Alibaba with the Securities and Exchange Commission shortly after its addition to the Pentagon’s list.
The SEC filing stated, “Inclusion in the CMC List will not affect the Group’s ability to conduct business as usual in the United States or anywhere in the world because the Group does not do business related to U.S. military procurement.” The filing further clarified that “The CMC List does not impose any other export controls or sanctions, nor does it prohibit any persons (other than the U.S. Department of Defense) from business dealings with the Group or transacting in the securities of the Company.”
As early as 2015, news outlets such as Bloomberg News were reporting on significant subsidies provided by the Chinese government to BYD. Wang Chuanfu, the founder and CEO of BYD, is identified as a member of the Chinese Communist Party and an associate of Xi Jinping.
In the case of Baidu, China’s Ministry of Science and Technology designated the company as part of the nation’s “national team” for AI development in 2017. Subsequently, according to state media, the CCP’s National Development and Reform Commission appointed Baidu to lead China’s first national laboratory focused on deep learning technologies. Baidu, which primarily operates a search engine, has also reportedly assisted the Chinese government in implementing censorship measures.
The Pentagon has defended its decisions regarding the companies added to the list, emphasizing the legal and strategic reasons behind these designations.
