The U.S. Defense Department has concluded that Chinese companies Alibaba Group, Baidu and electric vehicle maker BYD should be added to a list of firms deemed to have links to China’s military, Bloomberg News reported.
According to the report, Deputy Defense Secretary Stephen Feinberg informed U.S. lawmakers of the conclusion in a letter dated Oct. 7, weeks before Presidents Donald Trump and Xi Jinping reached a broad trade truce. It remains unclear whether the companies have formally been added to the Pentagon’s so-called Section 1260H list, which identifies Chinese companies considered to support the country’s military while operating in the United States.
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The designation itself does not trigger automatic sanctions or bans but can damage corporate reputations and serves as a warning to U.S. companies and investors about potential national security risks linked to commercial relationships.
Feinberg said Alibaba, Baidu and BYD — along with Eoptolink Technology, Hua Hong Semiconductor, RoboSense Technology, WuXi AppTec and Zhongji Innolight — “merit inclusion” on the list, Bloomberg reported.
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The 1260H list is updated annually under U.S. law and most recently included 134 companies in its January update. High-profile Chinese firms such as Tencent Holdings and battery manufacturer CATL already feature on the current version of the list.
The potential move underscores ongoing tensions between Washington and Beijing over technology, national security and supply chains, even as both sides have sought to stabilize trade relations.