Dems raked in millions from employees at firms newly identified as ‘Chinese military companies’

Democrats, among them some of the most recognizable names in politics, have accepted millions of dollars in campaign contributions from top employees at firms the Pentagon recently designated as “Chinese military companies” operating in the U.S.

The Department of War on June 8 designated Alibaba, Baidu and BYD as “Chinese military companies,” meaning that the three firms, in the eyes of the U.S. government, are providing assistance to the People’s Liberation Army through its military-civil fusion strategy or other means. Senior employees at these companies, including executives, have donated roughly $2.6 million to Democratic political committees since 2020, a Fox News Digital review of campaign finance filings has found.

Notable individuals and organizations that received contributions from top staffers at these firms include Sen. Adam Schiff, Rep. Nancy Pelosi, former President Joe Biden, Gov. Gavin Newsom, former Vice President Kamala Harris and the Democratic National Committee. 

Donors to Democratic committees from the trio of firms include executives, top-level lawyers, lobbyists and, to a much lesser extent, rank-and-file employees working in areas such as engineering or management. The staffers made some contributions to Republicans as well, though the overall sum was far lower than what Democrats received.

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The review included direct contributions, earmarked contributions and donations to joint-fundraising committees reported in campaign finance filings. It did not identify corporate donations from Alibaba, Baidu or BYD to the federal committees.

“American politicians should no longer accept campaign cash from any Chinese companies. Politicians who have been taking campaign cash from companies like Baidu, Alibaba and BYD now realize they were supported by blacklisted Chinese Military Companies,” Michael Lucci, CEO of the national security organization State Armor, told Fox News Digital. “The reason the Pentagon’s list of sanctioned CCP companies keeps expanding is because the Chinese Communist Party imposes a ‘civil-military fusion’ mandate upon all Chinese companies, forcing them to assist in modernizing China’s military with the goal of defeating America.”

“They all end up working to support the PLA. They should all be cut off from U.S. politics,” he added. 

The Pentagon’s Chinese military company designation via its 1260H list does not function as a traditional sanction, as Americans can continue to do business with the company.

Biden-linked committees and joint fundraising vehicles were by far the biggest beneficiaries of the funds, taking in roughly $850,000 from employees at the trio of firms between 2020 and 2024. The DNC, meanwhile, had a haul of around $500,000 while Harris-linked committees brought in roughly $140,000.

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Various state Democratic parties also received five-figure support from employees at Baidu, BYD and Alibaba. Newsom, per state campaign finance records, accepted $50,000 from an executive at BYD, an electric-vehicle manufacturer that his administration later awarded a contract. 

Fox News Digital reached the offices of Biden, Harris, Schiff, Pelosi, Newsom and the DNC on Sunday for comment and has not heard back as of publishing.

Pentagon officials are legally required to release a list of what it determines to be Chinese military companies every year. The first such list was released in June 2021 under President Joe Biden.

The Pentagon’s 1260H list identifies Chinese companies the Defense Department says are “Chinese military companies” operating directly or indirectly in the United States. Required by the 2021 National Defense Authorization Act, the list is intended to warn U.S. businesses and investors about firms tied to China’s military-civil fusion strategy, though inclusion does not automatically trigger sanctions.

New defense laws, however, have given the list more bite in recent years.

The Pentagon will be barred from directly contracting with companies on the list starting June 30 and is currently banned from contracting with companies who lobby on behalf 1260H-listed firms. In 2027, the ban will be expanded to prevent indirect procurement of goods manufactured by Chinese military companies through supply chain intermediaries.

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While Alibaba, Baidu and BYD only recently earned formal designations as Chinese military companies, their links to the CCP have been widely reported for years.

The Wall Street Journal, for instance, reported in 2017 that Alibaba was assisting the Chinese government in its surveillance efforts against dissidents, and Chinese state media reported in 2018 that the firm had a large CCP presence within it. Some sources within the company told Reuters in 2019 that the firm had developed an app designed specifically to increase ideological alignment with Chinese President Xi Jinping. 

Alibaba, however, has come out strongly against its inclusion on the Pentagon’s list of Chinese military companies.

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“There’s no basis to conclude that Alibaba should be placed on the Section 1260H List,” a company spokeswoman told Fox News Digital. “Alibaba is not a Chinese military company nor part of any military-civil fusion strategy. We will take all available legal action against attempts to misrepresent our company.”

That statement also appears in a Securities and Exchange Commission filing made by Alibaba shortly after it was added to the Pentagon’s list.

“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 SEC filing adds. “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.”

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As early as 2015, outlets like Bloomberg News were reporting that the Chinese government was heavily subsidizing BYD. Wang Chuanfu, the founder and CEO of the firm, is a member of the Chinese Communist Party and an ally of Xi. 

BYD did not respond to a request for comment when reached by Fox News Digital on Monday.

In Baidu’s case, China’s Ministry of Science and Technology named the company as part of the country’s “national team” for AI development in 2017, with it later appointed by the CCP’s National Development and Reform Commission to lead China’s first national lab on deep learning technologies, according to state media. The firm, which primarily operates a search engine, reportedly assists the Chinese government in carrying out censorship.     

“We categorically reject the inclusion of Baidu on the list, and there is no credible justification for adding Baidu to the list,” a Baidu spokesperson told Fox News Digital “The suggestion that Baidu is a military company is entirely baseless. We will not hesitate to use all options available to us to have the company removed from the list.”

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The Pentagon has defended its additions to the list.

“After the Department conducted its due diligence, it identified 188 entities that meet the statutory requirement for inclusion on the most recent 1260H List,” a Department of War spokesperson told Fox News Digital.