US Expands Military-Linked Company List To Include Alibaba, Baidu And BYD

The United States has expanded its list of companies it believes are linked to China’s military, adding several of the country’s most prominent technology and industrial firms, including Alibaba, Baidu and BYD. The move underscores Washington’s growing focus on national security concerns as competition between the world’s two largest economies intensifies.

The updated list, released by the Pentagon on Monday, replaces an earlier version published in early 2025. It arrives less than a month after President Donald Trump met Chinese President Xi Jinping in Beijing, where both sides sought to preserve a fragile truce in their ongoing trade dispute.

Major Chinese Technology Firms Added

The revised list broadens the scope of companies identified by the U.S. government as supporting China’s military and industrial capabilities. Newly added firms include e-commerce giant Alibaba, search engine operator Baidu and electric vehicle manufacturer BYD.

The Pentagon also added memory chipmakers CXMT and YMTC, reversing their exclusion from a briefly published version of the list in February. Their omission had drawn criticism from lawmakers and analysts concerned about China’s semiconductor ambitions.

Other additions include biotechnology company WuXi AppTec, robotics firms RoboSense Technology and Unitree, as well as several technology and manufacturing businesses operating in strategic sectors.

The list reflects Washington’s view that China’s commercial and technological development is increasingly intertwined with military objectives.

Companies Reject Pentagon Designations

Several of the companies named on the list strongly disputed their inclusion.

Alibaba stated that there was “no basis” for its designation and maintained that it is neither a military company nor part of any military-civil fusion strategy. The company said it would pursue legal avenues to challenge the decision.

Baidu also rejected the designation, describing claims that it is a military company as “entirely baseless”. The company indicated it would seek removal from the list through available legal channels.

WuXi AppTec similarly argued that its inclusion was incorrect and said it would take immediate steps to challenge the designation.

Meanwhile, BYD, CXMT, YMTC, RoboSense and Unitree did not immediately respond to requests for comment.

China Criticises US Actions

China’s embassy in Washington criticised the updated list, accusing the United States of unfairly targeting Chinese businesses.

A spokesperson said Beijing opposed the creation of discriminatory lists aimed at Chinese companies and urged Washington to provide a fair and non-discriminatory business environment.

The statement also emphasised that Chinese firms operating internationally comply with local laws and regulations.

Impact Of The Designation

Although the Pentagon’s list does not automatically impose sanctions, it carries significant consequences.

Under recently enacted U.S. legislation, the Department of Defense will be prohibited from directly contracting with listed companies starting later this month. From 2027, the military will also be barred from acquiring products or services from those firms through third-party suppliers.

As a result, affected companies and business partners could face commercial challenges, particularly in dealings involving U.S. government agencies and defence contractors.

The Pentagon noted that companies included on the list are considered to qualify as “Chinese military companies” operating in the United States. However, firms have the right to petition for removal.

Strategic Competition Remains In Focus

The updated designation highlights the broader strategic rivalry between Washington and Beijing. Policymakers increasingly view advanced technologies, semiconductors, telecommunications, artificial intelligence and robotics as areas with national security implications.

Craig Singleton, a China specialist at the Foundation for Defense of Democracies, said the revised list demonstrates that the United States now views China’s technology ecosystem as a strategic challenge rather than a collection of isolated companies.

According to Singleton, Washington is increasingly treating entire segments of China’s technology sector as areas of geopolitical competition, reflecting the growing overlap between economic policy, technological leadership and national security concerns.

With inputs from Reuters