Pentagon adds Alibaba, Baidu and BYD to Chinese military blacklist, drawing sharp rebuke from Beijing

The updated list

The Pentagon published an updated version of its so-called 1260H list on Monday, designating dozens of entities as "Chinese military companies" operating directly or indirectly in the United States. Among the most prominent additions are Alibaba, Baidu and BYD, alongside biotech firm WuXi AppTec, robotics companies RoboSense and Unitree, and memory chip makers CXMT and YMTC. The list, first created in 2021, already included drone maker DJI.

The companies met the criteria for classification as Chinese military companies and are active in the United States.

The new version replaces a 2025 list. In February, the Pentagon briefly posted an update but withdrew it without detailed explanation. That earlier version had already included Alibaba, Baidu, BYD and WuXi AppTec. Some subsidiaries of state oil giant CNOOC were removed because they are no longer active in the US or have been restructured, though another CNOOC unit was added.

Beijing's response

China's Foreign Ministry spokesperson Lin Jian urged the United States on Tuesday to correct its "erroneous practices" and stop unjustifiably suppressing Chinese companies. He repeated Beijing's opposition to Washington's use of the national security concept and the creation of "discriminatory lists under various names."

China will take necessary measures to vigorously defend the legitimate rights and interests of Chinese companies.

The publication comes less than a month after US President Donald Trump met Chinese leader Xi Jinping in Beijing, where both sides agreed to a fragile pause in their trade dispute. Xi is scheduled for an official visit to the United States this autumn at Trump's invitation.

Company reactions

Several targeted firms rejected the Pentagon's designation. Baidu called the allegation that it is a military company "completely unfounded" and said it would use all means to be removed from the list. Alibaba stated it is neither a Chinese military company nor involved in any civil-military fusion strategy, and announced it would pursue all possible legal action against what it called disinformation.

Alibaba is neither a Chinese military company nor involved in any civil-military fusion strategy. We will pursue all possible legal action against any attempt to spread disinformation about us.

WuXi AppTec described its inclusion as "clearly erroneous" and said it would take immediate steps to challenge it.

Practical impact

The designation does not impose direct sanctions. However, a new law will prevent the Department of Defense from contracting with or procuring from listed companies in the coming years, with restrictions extending to indirect acquisitions from 2027. The list also serves as a warning to Pentagon suppliers and other US government agencies. Nigel Peh, a portfolio manager at Timefolio Asset Management, told Bloomberg the move was primarily geopolitical and that the impact on the companies' business operations was limited.

I think this is simply a geopolitical maneuver. Fundamentally, the impact on these companies' business operations is limited.

Some Chinese firms have previously sued the United States over their inclusion on the list.