US Adds Alibaba, Baidu, BYD to Military Companies List

U.S. Designates Chinese Tech Giants as Military Companies

The U.S. Department of Defense (DOD) has officially expanded its 1260H list of “Chinese military companies,” adding several prominent technology and industrial firms, including Alibaba, BYD, and Baidu. This action, announced on Monday, June 8, 2026, intensifies Washington’s oversight of companies believed to contribute to Beijing’s military-civil fusion strategy. The designation is set to impose significant new contract restrictions on U.S. entities.

New Restrictions and Key Additions

This expansion follows a previous attempt in February 2026, when a similar document was quickly withdrawn from the Federal Register without explanation. The Pentagon’s stated rationale for these more than 60 new additions is to foster a “strong, secure and resilient industrial base” for the United States, indicating a focus on national security concerns.

The implications of this designation are significant for U.S. contractors. Starting June 30, 2024, the FY 2024 National Defense Authorization Act will prohibit the DOD from directly contracting for goods or services with any listed entity. These restrictions will further extend to indirect goods or services a year later, impacting a broader range of supply chain interactions.

Among the notable additions is Alibaba, China’s e-commerce giant and the country’s second-largest publicly listed company by market capitalization. Baidu, the search-engine and artificial intelligence (AI) heavyweight, has also been included. These additions underscore the U.S. government’s concern over the potential dual-use nature of advanced technology firms.

Other companies newly added to the list include BOE Technology, a major display manufacturer, and TP-Link, a significant player in the U.S. consumer router market. Unitree, known for its dog-like robots that have appeared in military contexts, also found its way onto the updated list. These inclusions highlight the diverse array of industries being scrutinized under the military-civil fusion strategy.

Memory chip manufacturers Yangtze Memory Technologies Co. (YMTC) and ChangXin Memory Technologies (CXMC), which were briefly removed from the February list, have been reinstated. This suggests a consistent stance on critical technology sectors. Conversely, ten entities, including subsidiaries of COSCO Shipping and China Electronics Corporation, were delisted, though no reasons were provided for their removal. With these latest changes, the 1260H list now comprises 188 firms.

Strategic Context and Bilateral Relations

Experts, such as former acting director of the Defense Intelligence Agency David Shedd, have emphasized the list’s importance in helping the private sector. Shedd stated that the list aids in identifying “Chinese firms embedded in the U.S. defense industrial base,” providing a clearer framework for due diligence.

This re-expansion of the list occurs shortly after President Trump and Chinese leader Xi Jinping had reportedly agreed to pursue “strategic stability” in bilateral relations. Beijing has consistently criticized Washington for overstretching national security concerns in economic matters and has pledged to protect the rights of Chinese companies against such designations.