The U.S. Department of Defense has added Alibaba, Baidu, BYD, Unitree, and other Chinese companies to its 1260H list of entities it says are linked to China’s military. The updated list now includes 188 companies and could make it harder for listed firms to receive U.S. defense contracts.
The list comes from Section 1260H of the 2021 National Defense Authorization Act. It is one of the tools the U.S. government uses to identify Chinese companies it says support China’s defense industrial base.
Major Tech And EV Companies Added
Alibaba, Baidu, EV maker BYD, and robotics company Unitree were among the latest names added. The Pentagon also added automotive and battery companies including Nio, CALB Group, EVE Energy, and RoboSense.
Baidu is one of China’s major AI and autonomous vehicle companies. RoboSense, a lidar sensor maker, now joins rival Hesai on the list.
Most of China’s major AI players are now on the list, with Tencent added last year. The update also comes as President Donald Trump has said he is considering whether the U.S. should take equity stakes in major American AI companies.
Companies Reject Pentagon Claims
Baidu rejected the designation in a statement to TechCrunch. The company said there was “no credible justification” for adding Baidu to the list and said the suggestion that it is a military company is “entirely baseless.”
Alibaba also rejected the designation. The company told TechCrunch it is not a Chinese military company and is not part of any military-civil fusion strategy.
Both companies said they would use available legal options to seek removal from the list. BYD, Nio, and RoboSense did not immediately respond to TechCrunch’s requests for comment.
List Returns After Earlier Withdrawal
A similar update was briefly published in February before being pulled from the Federal Register without a public explanation, according to Bloomberg News. The latest version restores several high-profile Chinese companies to the list.
The 1260H designation does not impose the same restrictions as a sanctions list. However, Reuters reported that inclusion can bar direct and indirect Pentagon contracts with listed companies and increase scrutiny from lawmakers and regulators.
The update also adds pressure to U.S.-China technology ties. Trump has used tariffs in both of his terms to pressure China, including a 100% tax on imported Chinese electric vehicles.
Featured image credits: Defense Visual Information Distribution Service via Picryl.com
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