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Pentagon Posts, Then Pulls, Expanded List Naming Alibaba and Baidu as Chinese Military-Linked Firms

The unexplained retraction pauses an update that carries future Pentagon contracting limits rather than sanctions.

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Alibaba was briefly added to a Pentagon list of Chinese firms alleged to have military links before the document was withdrawn. | Photo by Ban Daisy on Unsplash
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Overview

  • The Federal Register replaced the updated Section 1260H roster with a withdrawn notice about an hour after posting, citing an agency letter received after public inspection.
  • The briefly posted update added Alibaba, Baidu, BYD, WuXi AppTec and RoboSense, and removed memory-chip makers YMTC and CXMT, according to the withdrawn document.
  • Alibaba said there was no basis for its inclusion and warned of legal action, and Baidu issued a categorical rejection of the designation.
  • Section 1260H, mandated by the FY2021 defense law, does not impose sanctions but will bar the Pentagon from contracting with listed firms in coming years and has prompted past lawsuits.
  • No reason was provided for the pullback, which came as observers noted sensitive timing before a planned Trump–Xi meeting in April and as the list already includes firms like Tencent, CATL, Huawei and SMIC.