The United States has added Chinese e-commerce giant Alibaba, internet search provider Baidu, and automaker BYD to a list of companies it believes are aiding Beijing’s military.
The move, which could further inflame tensions between the two superpowers, comes less than a month after US President Donald Trump met China’s Xi Jinping in Beijing, where both leaders had maintained a delicate trade war truce.
The long-awaited update, released on Monday, supersedes a list from early 2025. It follows a brief posting and subsequent withdrawal of an updated list in February, reports BBC. The new version includes a broad swathe of China’s top technology firms, reflecting Washington’s security concerns amid intense geopolitical competition.
New additions and chipmakers
The updated 1260H or CMC list mirrors the withdrawn February version but now includes China’s top memory chipmakers, CXMT and YMTC.
Other notable additions include biotech firm WuXi AppTec, AI-driven robotics company RoboSense Technology Co Ltd, and Unitree, a prominent maker of humanoid and quadruped robots.
On 1 June, US AI chipmaker Nvidia announced plans to work with Unitree to build robots for researchers.
Other firms added to the list include BOE Technology Group, Tianma Microelectronics, and TP-Link Technologies.
Corporate and diplomatic pushback
The listed companies have reacted strongly to the designations. Alibaba stated there was “no basis” for its inclusion, asserting it is not a Chinese military company nor part of any military-civil fusion strategy.
The company vowed to take all available legal action against attempts to misrepresent it.
Baidu “categorically” rejected the move, describing the suggestion that it is a military company as “entirely baseless”.
WuXi AppTec also termed its inclusion “incorrect” and “erroneous”, stating it would take immediate action to challenge the designation.
The Chinese embassy in Washington expressed opposition to “discriminatory lists” and urged the US to stop its “wrong practice” to create a fair environment for Chinese firms.
Contractual prohibitions
While the listing does not formally impose sanctions, recent US law stipulates that the Department of Defence will be prohibited from contracting directly with these companies starting later this month. Furthermore, the US will be barred from purchasing their products or services via third parties beginning in 2027.
John Moolenaar, chair of the House of Representatives China select committee, described the update as a “warning to American businesses” and the public, alleging these firms work against US national interests.
Removals and adjustments
Some entities were removed from the list, including two units owned by state-owned oil major CNOOC: CNOOC China Ltd and CNOOC International Trading. However, CNOOC subsidiary China BlueChemical Limited was added, with the Pentagon noting that CNOOC remains directly controlled by the Chinese government.
The Pentagon stated that the listed firms qualify for designation as “Chinese military companies” and operate within the US. Companies may petition for removal or may be taken off if they cease US operations or undergo name changes.
