![The Pentagon, Baidu and BYD did not immediately respond to Reuters request for comments [File] | Photo Credit: REUTERS](https://newspage360.com/wp-content/uploads/2025/11/2025-11-20T234340Z_935231830_RC2UCZ9AY1RN_RTRMADP_3_USA-CHINA-CHIPS-1-1068x601.jpg "The Pentagon, Baidu and BYD did not immediately respond to Reuters request for comments [File] | Photo Credit: REUTERS")
Key Takeaways
- The Pentagon recommends adding Alibaba, Baidu, and BYD to its list of companies aiding China’s military.
- This designation serves as a major reputational risk and warning to US businesses.
- Alibaba strongly denies the allegations, stating it is not a military company.
The US Pentagon has concluded that tech giants Alibaba and Baidu, along with electric vehicle maker BYD, should be added to a list of companies supporting China’s military, according to a Bloomberg News report.
Deputy Defense Secretary Stephen Feinberg informed lawmakers of this decision in an October 7 letter. The notification came just three weeks before Presidents Donald Trump and Xi Jinping agreed to a broad trade truce.
Status of the Designation
It remains unclear if the companies have been formally added to the Pentagon’s 1260H list. This list identifies Chinese companies deemed military-linked but operating within the United States.
While the designation does not impose immediate bans, it represents a significant blow to a company’s reputation. It acts as a stark warning to US entities about the potential risks of conducting business with them.
Full List of Companies Under Scrutiny
According to the report, Feinberg stated that eight companies merit inclusion. Alongside Alibaba, Baidu, and BYD, the list includes:
- Eoptolink Technology Inc
- Hua Hong Semiconductor Ltd
- RoboSense Technology Co
- WuXi AppTec Co
- Zhongji Innolight Co
Alibaba’s Strong Rebuttal
An Alibaba spokesperson firmly rejected the Pentagon’s conclusion in a statement to Reuters. The company clarified, “there’s no basis to conclude that Alibaba should be placed on the Section 1260H List.”
They added, “Alibaba is not a Chinese military company nor part of any military-civil fusion strategy.” The spokesperson also noted that being on the list would not affect their US or global business, as they are not involved in US military procurement.
The Pentagon, Baidu, and BYD did not immediately respond to requests for comment from Reuters.
About the 1260H List
The Section 1260H list is an annually updated register of Chinese military companies, formally mandated under US law. In its last update in January, the list designated 134 companies, including major firms like Tencent Holdings and battery maker CATL.
