The United States has taken direct action against Chinese automaker BYD and other popular companies, alleging that they have ties to the Chinese military, which has been strongly denied by the manufacturer.
BYD is one of the most high-profile names identified in a new Department of War list of "Chinese military companies" which operate directly or indirectly with the United States.
The United States accuses BYD of being directly and indirectly affiliated with China's State-owned Assets Supervision and Administration Commission of the State Council (SASAC).
It also alleged that the carmaker was indirectly affiliated with the Ministry of Industry and Information Technology (MIIT).
The Department of War even claimed that BYD is a "military-civil fusion contributor to the Chinese defence industrial base because it is affiliated with MIIT and because it resides in or is affiliated with a military-civil fusion enterprise zone".
BYD has firmly rejected the calls, telling Reuters that it strongly opposed being labelled as a military company.
It added that it would use all "feasible administrative and legal means" to safeguard the company, its rights and its interests.
The Shenzhen-based manufacturer said the decision to include BYD on the DOW's list had harmed its "development achievements in the United States".
The United States has accused automaker BYD of being affiliated with the Chinese military
|BYD/GETTY
The Department of War said it had conducted its due diligence and identified 188 entities that "meet the statutory requirements for inclusion on the most recent 1260H List".
Other high-profile brands are included in the Department of War's list, namely Alibaba, Baidu, Huawei, Nio and Tencent.
The vast majority of firms named on the list have issued strong denials of the claims from the DOW, rejecting allegations that they work alongside the Chinese military.
Alibaba, which is often referred to as China's version of eBay, also said it would take legal action against attempts to misrepresent the company.
LATEST DEVELOPMENTS
BYD has quickly become one of the most popular car brands across the world
| BYDHouse of Representatives China Select Committee Chair John Moolenaar described the list as a "warning" to American businesses, the government and the American people.
The Republican representative from Michigan added: "These Chinese companies are working with the Chinese military against our national interests."
A spokesperson for the Chinese embassy in Washington DC said the updated list was "discriminatory", accusing the US government of "overstretching" national security.
They added: "Chinese companies that do business overseas have been strictly observing laws and regulations of their host countries."
BYD and other Chinese car brands do not export their vehicles to the United States
| BYDBYD does not export its vehicles to the United States, although it remains the best-selling electric car brand in the world, recently surpassing Tesla.
Its influence across the UK and Europe has quickly spread, despite only rolling out its vehicles on a truly global scale in the last few years.
So far this year, BYD has sold 31,553 vehicles in the UK, capturing an impressive 3.41 per cent of the market.
This is an impressive 113 per cent rise in sales year-on-year, and is quickly placing itself among the most notable and recognisable brands across the country.