US flags Alibaba, Baidu, BYD on military list

June 09, 2026 (MLN): The United States has added Chinese technology and industrial giants including e-commerce group Alibaba, search engine operator Baidu, electric vehicle makers BYD and Nio to the Pentagon's list of companies believed to be supporting China's military.

The updated list, known as the 1260H or CMC list, supersedes a version from early 2025 and arrives less than a month after President Donald Trump visited Beijing and met Chinese President Xi Jinping, where the two leaders maintained a fragile trade war truce, as reported by Reuters.

The new list broadly encompasses some of China's most prominent technology firms, showing Washington's security concerns amid deepening geopolitical rivalry between the two countries.

The update mirrors a version the Pentagon briefly published in February before withdrawing it without explanation.

The key difference in the new release is the inclusion of Chinese memory chipmakers CXMT and YMTC, which had been dropped from the short-lived February list, drawing criticism from Washington's China hawks.

Other newly added entities include biotech company WuXi AppTec, AI-driven robotics firm RoboSense Technology, and Unitree, a prominent Chinese manufacturer of humanoid and quadruped robots.

Nvidia had announced on June 1 that it planned to collaborate with Unitree to develop robots for researchers.

Several companies pushed back against their designation. Alibaba said there was "no basis" for its inclusion, calling itself neither a Chinese military company nor part of any military-civil fusion strategy, and threatened legal action.

Baidu called the designation "entirely baseless" and said it would pursue all available options for removal. WuXi AppTec described its inclusion as "incorrect" and said it would take immediate steps to challenge it.

China's embassy in Washington opposed what it called discriminatory listings targeting Chinese companies, and urged the US to create a fair and non-discriminatory environment for Chinese firms.

Some companies were removed from the list, including two CNOOC entities CNOOC China Ltd and CNOOC International Trading though another CNOOC subsidiary, China BlueChemical Limited, was added.

The Pentagon noted that CNOOC is directly controlled by the Chinese government. Companies can be removed from the list if they cease US operations or undergo name changes, not solely if they are cleared of military links.

Telecoms equipment maker Baicells was also added; Reuters had previously reported the company was under FBI and Commerce Department investigation.

While the listing does not constitute formal sanctions, US law will bar the Defense Department from contracting directly with listed companies starting later this month, and from procuring their products or services through third parties from 2027.

Nio said the procurement restrictions would not affect it, while Alibaba said the designation would not impact its ability to operate in the US or globally.

Craig Singleton of the Foundation for Defense of Democracies said the list served as a reality check following the Trump-Xi summit, adding that Washington was no longer viewing these as isolated companies but treating the entire technology stack as strategically contested.

House China Select Committee Chair John Moolenaar described the updated list as a warning to American businesses, government bodies, and the public that the named Chinese companies were working against US national interests.

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