The administration of US President Donald Trump has added several major Chinese companies, including Alibaba and Baidu, to a Pentagon list of firms allegedly supporting China’s military, increasing pressure on Beijing ahead of an expected meeting between leaders of the two countries, according to a Reuters report.
The Pentagon’s 1260H list does not directly impose sanctions on the companies. However, under a new US law, the Department of Defense will be barred in the coming years from contracting with or procuring from companies included on the list.
Other companies added on Friday include automaker BYD, biotech firm WuXi AppTec and AI-driven robotics company RoboSense Technology Co Ltd. Meanwhile, memory chip maker YMTC was removed from the list.
Inclusion in the list also signals to Pentagon suppliers and other US government agencies the military’s assessment of these firms. Some companies listed earlier have challenged their inclusion through legal routes.
Responding to the move, an Alibaba spokesperson told Reuters that there was no basis for the inclusion and indicated possible legal action. “Alibaba is not a Chinese military company nor part of any military-civil fusion strategy.”
The update to the list could strain ties between Washington and Beijing, particularly after a trade truce agreed between Chinese President Xi Jinping and US President Donald Trump in October.
The list already includes major Chinese firms such as Tencent Holdings and battery maker CATL. Tencent had earlier said its business would remain unaffected and that it would seek reconsideration, while CATL said it was “not engaged in any military-related activities”.
US lawmakers had earlier urged the Pentagon to expand the list to include several Chinese technology companies, including AI firm DeepSeek, smartphone maker Xiaomi and display manufacturer BOE Technology.
Along with YMTC, some firms included last year --such as COSCO SHIPPING Finance Co Ltd and ChangXin Memory Technologies Inc -- have now been removed from the list.
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