Pentagon adds Alibaba and Baidu to military-linked list

The U.S. Department of Defense has expanded its 1260H list—a U.S. government list of entities identified as supporting the Chinese military—to include 188 companies. This updated list was briefly published in February before being pulled from the Federal Register. The newly expanded list now includes several Chinese technology and automotive players. Among the new additions are Alibaba, Baidu, BYD, and Unitree. The Pentagon also added a handful of automotive industry players to the list this year, including Nio, CALB Group, and EVE Energy. Additionally, RoboSense has joined Hesai on the list.

Both Alibaba and Baidu have strongly rejected their inclusion on the list. Baidu stated that it categorically rejects the designation, asserting there is no credible justification for the decision and calling the suggestion that Baidu is a military company entirely baseless. Baidu also stated that it will not hesitate to use all available options to have the company removed from the list. Alibaba also pushed back against the designation. In a statement, Alibaba declared that the company is not a Chinese military company nor part of any military-civil fusion strategy, and that it will take all available legal action against attempts to misrepresent the company. The term military-civil fusion strategy refers to a policy strategy referenced by the U.S. government regarding Chinese companies.

The expansion of the 1260H list, which was created under the 2021 National Defense Authorization Act, increases the chance that the Department of Defense could make it harder for U.S. companies to do business with these entities. The list has become a key mechanism for U.S. restrictions on Chinese technology. This regulatory pressure comes alongside broader trade measures under President Donald Trump, who has implemented a 100% tax on imported Chinese EVs. Trump is weighing whether the U.S. should take equity stakes in the country’s top artificial intelligence companies. Most of China’s largest AI players are now on the list, following the addition of Tencent last year.

Why it matters

The expansion of the 1260H list could restrict U.S. business dealings with these major Chinese entities and further strain U.S.-China relations.