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Pentagon Adds Alibaba, Baidu and BYD to Expanded Chinese Military Companies List

Removal from the list will block the Defense Department from signing direct contracts later this month, raising investor and policy risk.

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FILE - Models stand next to a latest EV car from Chinese automaker BYD showcased at the Auto China 2026, in Beijing, April 25, 2026. (AP Photo/Andy Wong, File)
FILE - A visitor walks in front of Alibaba booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, China, Friday, July 18, 2025. (AP Photo/Mahesh Kumar A., file)
Representational Image | The Pentagon in Arlington, Virginia, US, on Wednesday, Oct. 15, 2025. National news organizations including Bloomberg News, five major television networks and the New York Times said they would refuse to sign new reporting limits set out by Defense Secretary Pete Hegseth's Pentagon. Photographer: Al Drago/Bloomberg

Overview

  • The Defense Department republished an expanded Section 1260H roster that names about 188 Chinese entities, formally adding private giants such as Alibaba, Baidu and BYD.
  • The Federal Register notice means the Pentagon cannot enter into direct contracts with listed firms later this month and will face limits on indirect procurement through third parties starting in 2027.
  • Several companies named on the list have publicly rejected their designations and said they will seek removal through administrative or legal channels.
  • China’s embassy and foreign ministry condemned the update as discriminatory and warned of possible countermeasures, reflecting a fresh strain in U.S.-China ties after recent high-level talks.
  • The republished list largely mirrors a version briefly posted and withdrawn in February but restores memory chipmakers CXMT and YMTC, and it is increasingly used as a policy and investor warning even though it does not itself impose sanctions.