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Pentagon has added several major Chinese companies, including electric vehicle giant BYD, technology company Alibaba and search engine Baidu, to its list of Chinese military companies. The move, announced in a Federal Register post dated June 9, 2026, prevents the above stated companies from receiving US defense contracts and marks a broader effort by Washington to target businesses it believes are helping China's military capabilities. According to the Pentagon, BYD, Alibaba and Baidu contribute to China's defense industrial base through links to a Chinese government ministry that oversees technology and industrial policy.

What is Pentagon's Chinese military companies list

The list was originally created in 2021 under a mandate from the US Congress. It is designed to identify Chinese companies that the Pentagon believes have links to China's military or contribute to the country's defense sector. The list includes not only companies directly controlled by the Chinese military but also businesses that the Pentagon believes support China's military development through technology, research, manufacturing or industrial cooperation.


This year's updated list contains 188 Chinese entities, up from about 130 companies last year.

“The Department of War released an update to the names of "Chinese military companies" operating directly or indirectly in the United States in accordance with the statutory requirement of Section 1260H of the National Defense Authorization Act for Fiscal Year 2021, which is available on the Public Inspection Issue of the Federal Register. After the Department conducted its due diligence, it identified 188 entities that meet the statutory requirements for inclusion on the most recent 1260H List,” Pentagon said in a press release.

Why BYD, Alibaba and Baidu are added to Pentagon's list

In its latest update, the Pentagon said BYD, Alibaba and Baidu are affiliated with China's Ministry of Industry and Information Technology. According to the Pentagon, Alibaba helps strengthen China's defense industrial base through its connection with the ministry. The agency made similar claims about BYD and Baidu.


“The Deputy Secretary of Defense has determined that the following entities qualify for designation as “Chinese military companies,” are engaged in providing commercial services, manufacturing, producing, or exporting (as required by Section 1260H(g)(2)(B)(ii)), and operate directly or indirectly in the United States,” the release stated.


BYD, the federal register post says, “is directly and indirectly affiliated with SASAC and is indirectly affiliated with MIIT (Section 1260H(g)(2)(B)(i)(I)). BYD is a military-civil fusion contributor to the Chinese defense industrial base because it is affiliated with MIIT and because it resides in or is affiliated with a military-civil fusion enterprise zone”.


Alibaba and Baidu are “indirectly affiliated with SASAC (Section 1260H(g)(2)(B)(i)(I)). Alibaba is a military-civil fusion contributor to the Chinese defense industrial base because it is affiliated with MIIT (Section 1260H(g)(3)(B)(i)),” the register said of Alibaba and Baidu.


The updated list also added robotics company Unitree, whose humanoid robots gained attention recently.