Pentagon adds Alibaba, Baidu, BYD to Chinese military companies list

The U.S. Department of Defense updated its Section 1260H list of “Chinese military companies,” adding major firms such as Alibaba Group, Baidu Inc., BYD Co., Unitree Robotics, WuXi AppTec, memory‑chip makers CXMT and YMTC, and several others. The revised list now contains 188 entities, up from 134 the previous year. Companies on the list are deemed to support China’s People’s Liberation Army through ties to the Ministry of Industry and Information Technology, the State‑owned Assets Supervision and Administration Commission, or other “military‑civil fusion” programs.

Under U.S. law, the designation does not constitute a sanction but bars the Pentagon from entering into direct contracts with the listed firms after late June and restricts indirect procurement through third‑parties starting in 2027. Firms may petition for removal. The move follows a brief, withdrawn February release and comes weeks after President Donald Trump’s meeting with Xi Jinping in Beijing.

Chinese officials described the list as “discriminatory” and said the companies comply with host‑country laws. Alibaba, Baidu and others have denied any military connection, calling the designations “mistakes.” U.S. lawmakers, including Rep. John Moolenaar, warned American businesses to avoid transactions with the firms, framing the list as a warning against enabling China’s military growth.