A former U.S. ambassador has warned that the Department of War’s recent designation of BYD as a Chinese military company poses an immediate threat to national security.
California Governor Gavin Newsom (D.) received $50,000 in campaign contributions from Li Ke, a Chinese national who serves as executive vice president of BYD and president of its subsidiary BYD Americas. Li donated $20,000 to Newsom’s 2018 gubernatorial campaign and an additional $30,000 for his 2022 re-election effort, according to state campaign finance disclosures.
The former U.S. ambassador, Joseph Cella, president of the Secure Our States Coalition, stated: “The Department of War has blacklisted BYD for a reason. It means that there is a threat to the national security of the United States.”
Newsom’s administration has cultivated a close relationship with BYD, awarding it billions in government contracts and publicly commending the company during a 2023 visit to its Shenzhen headquarters. During that trip, Newsom joked: “Who needs a car when you can have a car and a boat?” after test-driving a floating BYD model.
The Pentagon’s action follows years of documented ties between BYD and Chinese military operations. For over a decade, the Chinese government has provided billions in subsidies to BYD while its military has facilitated critical research partnerships, enabling the company to become the world’s largest electric vehicle manufacturer.
Experts have long highlighted BYD’s deep integration with Beijing’s strategic objectives. A 2019 report by Radarlock detailed how BYD functions as a conduit for Chinese state technology acquisition and market expansion. The U.S.-China Economic and Security Review Commission has noted that BYD’s dominance in global electric vehicle markets stems from the Chinese Communist Party’s “Made in China 2025” initiative.
California’s recent contracts with BYD—including a $1 billion no-bid agreement for pandemic masks—have drawn significant scrutiny. Newsom’s office declined to provide details of the mask contract, which faced criticism after BYD missed delivery deadlines and failed federal certification requirements.
Cella emphasized: “China’s always looking for a weak link and I think that they found a weak link in Governor Newsom.”