The US Department of Defense has released its latest “1260H military companies list,” adding major Chinese firms including Alibaba, BYD and Baidu. The US alleges that these companies are either linked to or assisting the Chinese military, or have ties to China’s military-industrial complex. Analysts say the move could further intensify tensions between the US and China in technology and trade.
According to a notice published in the Federal Register, the updated list also includes dozens of other Chinese companies across a wide range of sectors, such as pharmaceutical company WuXi AppTec, electric vehicle maker NIO, LiDAR firms Hesai Technology and RoboSense, battery producer CALB, chipmakers CXMT and YMTC, and robotics firm Unitree. The update also removed 10 entities from the list.
With this revision, China’s three major tech giants — Alibaba, Baidu and Tencent — are now all designated by Washington as entities supporting the Chinese military. Tencent was added last year, while BYD is the latest high-profile electric vehicle manufacturer to be included.
The Pentagon said companies are designated because they are suspected of directly or indirectly supporting the People’s Liberation Army through commercial services, manufacturing, production or export activities, meeting the definition of a “Chinese military company” under Section 1260H.
While inclusion on the list does not immediately trigger sanctions, restrictions have been tightening in recent years. Under existing legislation, the Pentagon will be prohibited from entering into direct contracts with listed companies later this month, and from 2027 will also be barred from purchasing their goods or services through third parties.
So far, many of the named companies have not publicly responded. China’s embassy in Washington has previously criticised such measures, urging the US to stop suppressing Chinese firms and to provide a fair, impartial and non-discriminatory business environment.
Commentary
The expansion of the list reflects how US–China competition has moved beyond trade into strategic sectors such as artificial intelligence, semiconductors, electric vehicles and new energy. Although listing does not immediately impose sanctions, it may pave the way for tighter investment screening, export controls and market restrictions in the future.
Beijing maintains that the companies are commercial entities and denies any special military ties. However, under Washington’s “de-risking” approach, the boundary between national security and civilian technology is becoming increasingly blurred, with many civilian innovations now viewed as potentially dual-use.
As strategic rivalry continues to intensify, further restrictions are likely. For Chinese firms, strengthening domestic R&D capacity and reducing reliance on foreign technology will increasingly become a key long-term challenge.