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3h ago

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

Barred from direct U.S. Defense Department contracts later this month, the designations escalate scrutiny of China’s military‑civil fusion.

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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)

Overview

  • The Defense Department published an expanded Section 1260H roster on Monday that names 188 Chinese entities, including Alibaba, BYD, Baidu and reinstated memory chipmakers CXMT and YMTC.
  • The listing will bar the Pentagon from entering direct contracts with those firms beginning later this month and will impose limits on indirect procurement through third parties starting in 2027.
  • The Pentagon says the companies qualify because of ties to China’s Ministry of Industry and Information Technology, the State‑owned Assets Supervision and Administration Commission and participation in military‑civil fusion programs.
  • Several named firms have publicly disputed their inclusion and said they will seek administrative removal or pursue legal challenges, while Beijing has condemned the move and warned of countermeasures.
  • Beyond immediate contracting limits, the designation raises reputational and market risks for listed companies and could affect U.S. suppliers, investors and future trade or regulatory steps between Washington and Beijing.