The United States on Monday released an updated list of Chinese companies that, according to the Department of Defense, assist China’s military. The measure included names like Alibaba, BYD and Baidu. Beijing reacted with a formal protest and demanded an end to what it called the repression of its companies.
The publication came weeks after President Donald Trump met with Chinese leader Xi Jinping in Beijing. At the time, both governments sought to preserve stability in bilateral relations. The new relationship maintains similarity with the previous version, which had been removed without explanation months before.
List update hits technology and industry giants
The United States Department of Defense has expanded the list of entities considered linked to China’s military-civil fusion strategy. In addition to Alibaba, search engine Baidu and electric vehicle manufacturer BYD, two memory chip producers were included on the list: ChangXin Memory Technologies and Yangtze Memory Technologies.
Other prominent companies in the artificial intelligence sector, such as Tencent, also appear in the document. The complete list now totals more than 180 entities. The inclusion prevents these companies from signing new direct contracts with the Pentagon from June 30, 2026.
- Alibaba operates the world’s largest e-commerce marketplace
- BYD leads global sales of electric and hybrid vehicles
- Baidu develops search technologies and autonomous vehicles
- ChangXin Memory and Yangtze Memory operate in the production of semiconductors
Republican Representative John Moolenaar, chairman of the House Select Committee on China, called the list a warning for American companies. He called on US companies to stop doing business with the aforementioned entities to avoid contributing to Chinese military advances.
Immediate response from Beijing and the companies mentioned
Chinese Foreign Ministry spokesman Lin Jian criticized the American decision. He stated that the United States generalizes the concept of national security and practices reckless repression against Chinese companies. The chancellor urged Washington to correct practices.
Alibaba denied any military ties and classified the inclusion as an error. The company threatened to take legal action. In a statement, he highlighted that it is not part of a military-civil fusion strategy. Baidu also rejected the accusations and promised to use all resources to delist.
BYD had not yet issued a detailed position at the time of writing this report. Analysts monitor possible impact on the shares of listed companies.
Previous context and trade tensions
A preliminary version of the list was briefly circulated in February 2026. The document was withdrawn shortly afterwards without official justification. The current update resumes several of the previous designations and expands the scope to strategic sectors such as semiconductors and electric vehicles.
The measure comes at a time of trade negotiations between the two largest economies on the planet. Trump invited Xi Jinping to visit Washington in September. Observers believe that the list could complicate detente efforts.
The Pentagon periodically updates the relationship based on the 2021 National Defense Authorization Act. The designation does not impose direct sanctions on the private sector, but signals risk to American government contracts.
Potential impact for global supply chains
US companies that maintain ties with listed companies may face pressure to review partnerships. The House committee recommended caution to avoid risks to national security.
Technology, automotive and semiconductor sectors focus attention. China dominates production in several of these areas. Any escalation could affect global prices for electric components and vehicles.
International relations experts follow developments. So far, there is no evidence of immediate trade retaliation from Beijing beyond the diplomatic protest.
History of similar lists
The Pentagon has maintained a similar relationship since 2021. Previous updates have included Huawei, DJI and other firms. The strategy aims to limit transfer of sensitive technology to the People’s Liberation Army.
Chinese companies routinely dispute the designations. They argue that the accusations lack concrete evidence and undermine legitimate business operations. Legal proceedings against previous inclusions occurred in specific cases.
The current version reinforces the focus on high-profile companies. The inclusion of Alibaba, BYD and Baidu increases the document’s visibility.