The Pentagon has officially added Alibaba, BYD, and Baidu to a list preventing these companies from securing U.S. defense contracts due to their connections to the Chinese military.
This action stems from the 2021 “Chinese Military Enterprises” List, or 1260H List, which was established under the National Defense Authorization Act. The companies included are believed to support the People’s Liberation Army (PLA), though they are not state-owned.
This list highlights the close ties between the private sector in China and its military. It serves as a warning to American businesses that collaborating with these firms could lead to their technology and intellectual property being compromised by the PLA.
With the recent additions, the 1260H list now totals 188 companies, a noticeable increase from 130 last year. While being on this list does not automatically incur penalties, the Chinese government views it as a measure aimed at stifling competition and curtailing China’s industrial expansion rather than addressing real security concerns.
In response, the Chinese Embassy in the U.S. criticized the Pentagon, claiming it was “overextending the concept of national security” and creating a biased list targeting Chinese enterprises.
They urged the U.S. to abandon these practices and foster a more equitable environment for Chinese companies.
Alibaba responded by asserting that it is “not a Chinese military enterprise” and is not involved in the country’s civil-military integration. A spokesperson emphasized their intent to pursue legal action if the company’s identity is misrepresented.
The Pentagon pointed out that Alibaba, BYD, and Baidu all have connections with the Chinese Communist Party’s Ministry of Industry and Information Technology. Additionally, the robotics firm Unitree was included on the list as it was deemed to have knowingly received assistance from the Chinese state.
Interestingly, it was also noted that all three major AI companies in China, which include Alibaba, Baidu, and Tencent Holdings, are now part of the 1260H listing.
However, two chip manufacturers, ChangXin Memory Technologies and Yangtze Memory Technologies, seem to have been overlooked this year. Their removal from last year’s list sparked criticism that the Trump administration might have been accommodating China during diplomatic talks.
Representative John Moolener from Michigan, who heads the House Select Committee on China, asserted that the 1260H list is essential and advocated for more stringent measures against the listed companies.
He claimed that these Chinese firms are collaborating with their military in ways that threaten U.S. national interests. Thus, companies listed on U.S. exchanges should face delisting, and their products should be excluded from domestic supply chains.
“American businesses must cease operations with these national security threats to prevent enabling China’s military expansion,” Moolener stressed.
