Baidu Denies Ties to Chinese Military After False Report Tanks Stock Price
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A newspaper falsely reported that Baidu was working with the Chinese military, causing Baidu's stock to plunge. Baidu stated it is not working with the military.
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The incident shows the difficulty for tech companies to avoid connections with militaries as they develop dual-use AI tech.
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US companies can withhold tech from the government but it's unclear if Chinese companies can refuse to cooperate with China's military.
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Still, a think tank found Chinese companies are not legally obligated to participate in China's military-civilian fusion policy.
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The original newspaper corrected its report but the claim that Baidu's AI was linked to a military lab's system was wrong and caused outsized damage.