The Pentagon has expanded its blacklist of Chinese military-linked firms to include several of China’s most prominent commercial giants, including Alibaba, Baidu and electric vehicle manufacturer BYD.
The update to the “1260H list”, an annually registry published by US Department of War to identify Chinese military companies working in US directly or indirectly, marks a fresh blow to the fragile diplomatic thaw between Washington and Beijing just weeks after a high-profile summit between President Donald Trump and Chinese leader Xi Jinping.
The Defence Department’s updated roster now contains 188 firms, up from 134 last year, and the Pentagon defines these entities as contributors to Beijing’s “military-civil fusion” strategy, which it claims systematically blends civilian tech research with state defence priorities.
While the designations do not impose immediate export sanctions, they carry significant economic consequences as the US Defence Department will be prohibited from contracting directly with the listed companies starting later this month. Procurement through third parties will also be banned by June 2027.
Experts say the latest expansion targets household consumer brands rather than traditional defence contractors. Alongside internet giant Baidu and e-commerce leader Alibaba, the list features advanced technology players like biotech firm WuXi AppTec, lidar maker RoboSense Technology and humanoid robot manufacturer Unitree.
The move has also triggered immediate pushback from corporate leaders and diplomats. Alibaba and Baidu strongly rejected the designations, stating they have no connection to military strategies, pledging to pursue all available legal actions to be removed from the list.
China’s embassy in Washington also condemned the listing as discriminatory, accusing the US of overstretching the concept of national security to suppress overseas Chinese businesses.
Market analysts note that while the measure complicates international supply chains, it underscores Washington’s enduring view of Chinese civilian tech as a strategic security threat.
