Overview
- Bloomberg reported that U.S. defense officials determined Alibaba, Baidu and BYD should be added to the Section 1260H list of Chinese firms assessed as supporting the military.
- Deputy Defense Secretary Stephen Feinberg informed lawmakers of the determination in an October 7 letter preceding the late‑October U.S.–China trade truce.
- Five additional Chinese companies were recommended for inclusion: Eoptolink Technology, Hua Hong Semiconductor, RoboSense Technology, WuXi AppTec and Zhongji Innolight.
- The Pentagon has not publicly confirmed any formal additions, and the 1260H list is typically updated annually following the January revision that listed 134 firms including Tencent and CATL.
- Alibaba publicly denied any military ties, Baidu also rejected the suggestion as baseless, and Hong Kong shares fell after the report with Alibaba down about 2.2% and Baidu and BYD each off roughly 1%.