Nio denies US allegations, says inclusion on Chinese military companies list ‘will not impact’ business

[SINGAPORE] Electric vehicle maker Nio has denied allegations by the US that it is aiding the Chinese military.

The company on Tuesday (Jun 9) said it believes that its inclusion on the Chinese military companies (CMC) list is “not justified as it is not a Chinese military company or a… contributor to the Chinese defence industrial base”.

Nio, along with BYD, Alibaba and other Chinese tech companies were placed on the CMC list on Monday by the US Department of Defense (DOD).

Nio noted that the list is “not a sanctions list”, and that the procurement limitations tied to the list “will not impact the business of the company”.

Being on the CMC list also does not restrict transactions in the company’s securities, it added.

Nio said that it will engage the DOD to be removed from the list, “including taking legal action if necessary” to protect its interests and those of its shareholders.

Shares of Nio closed up 1.1 per cent or US$0.06 at US$5.54 on Tuesday.