A new report says that the Pentagon has decided that three major Chinese companies — Alibaba Group, Baidu and BYD — should be added to a special U.S. list of companies believed to support China’s military. This decision was shared in a letter earlier in October, just weeks before the leaders of both countries agreed to reduce rising trade tensions.
Pentagon Move Raises Fresh Questions
The U.S. may add the companies to the Section 1260H list, which identifies Chinese firms that it believes could support China’s military activities while operating in the United States. Being on this list does not ban a company, but it sends a strong warning to U.S. businesses to exercise caution when dealing with them.
The Pentagon updates the list every year. In the most recent update, it listed more than 130 Chinese companies, including well-known technology and battery firms. The new report says the Pentagon believes that eight additional companies meet the criteria for inclusion this time. Along with Alibaba, Baidu and BYD, it also lists Eoptolink Technology, Hua Hong Semiconductor, RoboSense Technology, WuXi AppTec and Zhongji Innolight.
Although the Pentagon’s recommendation does not automatically add these companies to the list, it draws significant attention to large Chinese firms operating globally. The U.S. government has not yet officially confirmed whether it has added the companies.
Reasons Behind the Possible Addition
The Pentagon uses the Section 1260H list to identify firms that it believes may support China’s defense programs. Even though this designation does not come with penalties, it can hurt a company’s reputation and influence the decisions of American partners. Banks, suppliers and investors often act more cautiously when a company appears on a U.S. national-security list.
For Alibaba, Baidu and BYD, such attention could have long-term effects. These are companies with huge global footprints. Alibaba is a major force in cloud computing and online shopping. Baidu plays a major role in artificial intelligence and search technology. BYD is one of the world’s largest electric-vehicle and battery manufacturers.
Pentagon’s Stark Warning: ‘No Sugarcoating’ — China’s Invasion of Taiwan Could Hit Before 2027
The report highlights that the Pentagon’s list does not block companies from operating normally. Instead, it warns U.S. businesses and organizations to exercise caution. The Pentagon finds that the companies meet the criteria based on their technology, capabilities, and operations.
Alibaba stated that it should not appear on the list and that it does not participate in any military-related programs. The company added that even if the U.S. listed it, the listing would not affect its everyday operations because it does not work with U.S. military procurement.
Baidu, BYD, and the Pentagon have not provided comments on the report, and no official statements confirm or deny the companies’ potential inclusion.
Global Impact as Pentagon Scrutiny Extends to Tech Giants
The possibility of adding these companies to the list highlights how closely global technology and politics are now linked. The Pentagon’s growing focus on cloud services, artificial intelligence and electric-vehicle technologies shows how modern industries overlap with national-security concerns.
Alibaba, Baidu and BYD are deeply connected to fast-growing fields that influence data, communications and manufacturing. When the Pentagon raises concerns about companies in these areas, it sends signals across the worldwide tech and business community.
The issue also appears at a time when relations between the United States and China continue to face pressure. Topics such as technology access, supply chains, military development and business restrictions have created points of tension. For many international companies, decisions like the Pentagon’s review can influence stock values, partnerships, research projects and public trust.
The previous update of the Section 1260H list in January named more than 130 companies. If the U.S. accepts the Pentagon’s recommendations, it could expand the list again this year. Adding globally recognized companies like Alibaba, Baidu, and BYD would attract more attention from governments, investors, and technology sectors worldwide.
U.S. Pentagon greenlights $330M fighter jet boost as Taiwan braces for regional flashpoints
At this stage, the report only notes that the Pentagon has completed its review. Officials have not confirmed whether they have officially added any company. The situation could change when the Pentagon updates the list again, but for now, the report emphasizes the influence of a single Pentagon recommendation.
The development also shows that major industries — from online platforms to electric vehicles and high-tech sensors — now play a direct role in discussions related to national security.
This makes the Pentagon’s evaluation important not only for the companies involved but for anyone watching global technology trends and business relationships between the two largest economies in the world.