US designates BYD, Alibaba, and Baidu as entities associated with the Chinese military.
The ongoing tensions between the United States and China have recently escalated, with the Pentagon expanding its blacklist of Chinese companies deemed to support the military. This decision not only affects well-known corporations like Alibaba and BYD but also raises critical questions about the future of international commerce and cooperation in technology. As the relationship between these two superpowers remains delicate, the implications of such actions could resonate far beyond economic borders.
The United States has designated major Chinese corporations—Alibaba, BYD, and Baidu—as entities that support China’s military agenda, a move that expands its blacklist to include some of the country’s most recognizable brands. The Pentagon’s recent inclusion of these firms, announced in an update released on Monday, signals a potentially serious complication in the already fragile detente between Washington and Beijing, coming after years of strained relations.
In a swift response, China’s embassy in Washington condemned this classification as “discriminatory”. A spokesperson criticized the United States government for “overstretching” the concept of national security, emphasizing that Chinese companies have always adhered to laws and regulations of the countries they operate within. They urged the U.S. to create a fair, just, and non-discriminatory environment for Chinese enterprises.
Alibaba, known as China’s largest e-commerce platform, quickly refuted its inclusion on the blacklist, asserting that it has “no basis.” A company representative noted, “Alibaba is not a Chinese military company nor part of any military-civil fusion strategy,” pledging to take legal action against perceived mischaracterizations. Baidu and BYD did not provide immediate comments on the matter.
The Pentagon’s “Chinese military companies” list, updated annually, has grown from 134 entities in 2025 to 188 in the latest compilation, reinforcing the scope of the U.S. government’s scrutiny. Companies that fall under this designation and their controlled entities will be barred from U.S. defense contracts, with regulations set to take effect shortly.
The Pentagon defines these firms as being either owned or controlled by the Chinese military or contributing to its military-civil fusion strategy, a key aspect of Beijing’s approach to integrating civilian and defense research and innovation. Notably, the updated list includes references to Alibaba, BYD, and Baidu supporting military development through ties to government agencies like the Assets Supervision and Administration Commission and the Ministry of Industry and Information Technology.
Republican lawmaker John Moolenaar, chair of the House committee overseeing U.S. strategic competition with China, warned that the list serves as a critical reminder about the national security threats posed by these companies. He called for publicly traded firms associated with the list to be delisted from U.S. exchanges and urged American companies to sever ties with these entities to thwart potential threats to national interests.
The expansion of the blacklist arrives shortly after a two-day summit held in Beijing, where U.S. President Donald Trump and Chinese leader Xi Jinping aimed to recalibrate the long-standing tensions in trade and technology. Alibaba, Baidu, and BYD represent key players in their respective industries, with Alibaba leading e-commerce, Baidu dominating internet search, and BYD emerging as a frontrunner in the electric vehicle market. Their recent designation underlines a growing trend where high-profile brands not typically associated with defense-related activities are now being scrutinized.
The new additions to the blacklist also include RoboSense Technology and Unitree Robotics, companies that specialize in AI and robotics. Both firms did not respond immediately to requests for comment. National security expert Dennis Wilder expressed skepticism regarding the blacklist’s practicality, arguing that while it may make certain U.S. companies wary, many already have deep ties with the implicated companies that would not easily sever unless faced with substantial penalties.
The increasing breadth of these sanctions raises the question of their effectiveness, as Wilder warned that without a full decoupling from the Chinese economy, such measures might come off as performative rather than substantive.
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