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The Pentagon has updated its annual 1260H list and has added 188 Chinese entities, including Alibaba, Baidu and BYD, and reinstated memory chipmakers CXMT and YMTC. Beijing has protested and several listed companies have rejected the designations. The change will bar the Defense Department from direct contracts with listed firms this month and from third‑party purchases from 2027.
The Pentagon has added major Chinese firms such as BYD, Alibaba and Baidu to a sanctions list over alleged ties to China’s military. Beijing condemns the move as unfair and vows retaliation; the update follows a high-stakes meeting between Presidents Trump and Xi and could affect 2027 procurement rules.
China has placed 10 US companies, including rare‑earth producers MP Materials and USA Rare Earth, on its export control list and has barred Chinese government procurement from 46 US firms. Beijing has said the moves respond to a recent Pentagon blacklist of Chinese companies and has ordered immediate suspension of Chinese-origin dual‑use exports to the named firms.
Alibaba has filed a federal lawsuit arguing that the DoD’s 1260H designation labeling it a Chinese military-society link is baseless. The suit seeks removal from the list and challenges the process as unfair. Several other Chinese firms face similar actions as the government moves to tighten tech controls amid U.S.-China tensions.