Pentagon expands list of China military-linked firms to include Alibaba, Baidu in fresh blow to diplomatic thaw
The U.S. Department of Defense added e-commerce giant Alibaba, internet group Baidu, battery maker CATL and electric-vehicle maker BYD to its list of firms with alleged Chinese military ties. The move undercuts a diplomatic thaw between Washington and Beijing as Alibaba and Baidu shares dropped sharply in Hong Kong.
The Pentagon's annual 1260H list now also includes chip-equipment maker Naura alongside Alibaba, Baidu, CATL and BYD. Inclusion is not a direct sanction but restricts access to U.S. government procurement and Department of Defense contracts, while creating reputational risk for investment funds.
A department spokesperson said the list documents firms judged to be connected to China's civil-military fusion policy. China's Foreign Ministry condemned the move as "baseless pressure," and the affected companies, including Alibaba and Baidu, issued statements rejecting any military links. In Hong Kong, Alibaba fell 3.2% and Baidu dropped 4%.
The announcement landed amid ongoing U.S.-China trade talks, injecting fresh tension into technical meetings in Geneva. This article is not investment advice.
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