Overview
- The Department of Defense published an expanded 1260H registry on Tuesday that added major firms including Alibaba, Baidu and BYD and raised the total number of listed entities to 188.
- Inclusion bars those companies from Department of Defense contracts immediately and triggers planned limits on indirect purchases beginning in 2027.
- Affected firms have denied military links and said they will pursue legal or administrative challenges to their designations.
- China’s Foreign Ministry condemned the update as an unfair, politicized use of national security rules and warned it will defend the rights of Chinese companies.
- The list targets firms in AI, semiconductors, batteries, robotics and EVs under U.S. concern about civil‑military fusion and could deepen reputational and commercial risks for partners and investors while raising bilateral tensions.