World
Pentagon accuses Alibaba, Baidu and BYD of aiding China’s military
WASHINGTON – The Pentagon identified some of China’s biggest companies including Alibaba Group, Baidu and BYD as entities that support the Chinese military, in a move that risks provoking new friction with the government in Beijing.
The designations were announced on June 8 in a post to the Federal Register, updating an annually issued Defense Department roster of companies believed by the US to aid the People’s Liberation Army. Those companies were on a previous update of the list that was posted briefly in February before being withdrawn minutes later.
With the move, the US has now declared that three of China’s artificial intelligence champions – Alibaba, Baidu and Tencent Holdings – aid the Asian country’s military. Tencent was added to the list in 2025. The designation of BYD, meanwhile, targets China’s top electric-vehicle company.
Restored to the Pentagon’s so-called 1260H list were two Chinese memory chipmakers – ChangXin Memory Technologies and Yangtze Memory Technologies – that had been previously designated by the US government but were removed from the list that briefly appeared in February.
While the list carries few immediate legal repercussions, the Pentagon is increasingly using it to restrict companies’ abilities to contract with the military or to receive research funding. A 1260H designation also serves as a warning to US investors, and is widely considered a red flag that can precede more punitive trade restrictions.
Representatives for Alibaba and Baidu had no immediate comment. The companies have previously rejected US claims that they supported the Chinese military in any way.
First published in 2021, the 1260H list now includes more than 100 businesses accused of working with the Chinese military. The names include those of airlines and computer hardware manufacturers, as well as firms in construction, shipping and communications. To be included, a company must operate directly or indirectly in the US. BLOOMBERG
