U.S. Updates Section 1260H List; Multiple Chinese EV Makers Including BYD and NIO Added

[Policy Update] The U.S. Department of Defense has updated its Section 1260H list, adding new energy vehicle manufacturers including BYD and NIO.

Key Development: BYD and NIO among those newly added to the 'Chinese Military Companies' list

On June 8, 2026, the U.S. Department of Defense updated the list under Section 1260H of the National Defense Authorization Act (NDAA), newly including automotive supply chain companies such as BYD, NIO, CALB (China Aviation Lithium Battery), and EVE Energy. The total number of listed entities now stands at 188. The U.S. stated that restrictions will prohibit direct procurement by the Department of Defense starting June 30, 2026, and will expand to indirect procurement beginning in 2027.

Strategic Rationale: Controversy over broadened 'military affiliation' criteria

The U.S. cited alleged ties between these companies and China’s State-owned Assets Supervision and Administration Commission (SASAC) and Ministry of Industry and Information Technology (MIIT) as grounds for inclusion—a move strongly opposed by China. Foreign Ministry spokesperson Lin Jian stated this action represents an overbroad application of national security concepts and constitutes unjustified suppression of Chinese enterprises.

Industry Impact: Companies issue urgent responses, stressing non-military status

Both NIO and BYD issued public statements denying any military affiliations, asserting their inclusion lacks legitimate justification. They emphasized that the current listing does not constitute sanctions and will not affect normal business operations or securities trading.