The United States Department of Defense released this Monday (8) an updated list of Chinese companies that, according to Washington, assist Beijing’s Armed Forces. The measure provoked an immediate protest from China, which accused the US of unjustifiably repressing companies in the country.
Among the main companies mentioned are the e-commerce giant Alibaba, the search engine Baidu and the electric vehicle manufacturer BYD. The list is part of the so-called 1260H list, which identifies entities linked to China’s military-civil fusion strategy.
Companies deny accusations and threaten reaction
Alibaba called the inclusion a “mistake” and said it is not a military company nor is it participating in any military-civilian merger strategy. The company threatened to take legal action to challenge the decision.
Baidu rejected the allegations, calling them “completely unfounded”, and said it will use all available resources to be delisted. BYD has not yet publicly commented on the case.
Alert to American companies
Republican Rep. John Moolenaar, chairman of the House Select Committee on China, called the list a wake-up call for U.S. businesses, governments and citizens. He recommended that American companies stop doing business with the listed entities to avoid facilitating Chinese military advances.
The update comes just weeks after President Donald Trump met with Chinese leader Xi Jinping in Beijing at a time when both sides sought stability in bilateral relations. Trump invited Xi to visit Washington in September.
Previous list context and impact
The new version is similar to a list published briefly in February and then withdrawn without explanation. Now, the list includes around 188 companies in total, again incorporating memory chip manufacturers such as ChangXin Memory Technologies and Yangtze Memory Technologies, as well as other names in the artificial intelligence sector, such as Tencent.
While the designation does not impose immediate automatic sanctions, it restricts the Pentagon’s direct contracting with these companies and serves as a signal to American suppliers and investors. The list reinforces Washington’s concern about the integration between the civil and military sectors in China.
Beijing’s reaction
Chinese Foreign Ministry spokesman Lin Jian criticized the move as a “reckless generalization” of the concept of national security. He demanded that Washington correct its practices and stop repressing Chinese companies.
The inclusion of global brands like Alibaba and BYD could increase trade tensions between the world’s two largest economies, even amid dialogue efforts.