Key facts
- The U.S. Department of Defense added 188 Chinese companies to its military-linked firms list.
- Prominent companies such as Alibaba, Baidu, BYD, and Nio were included in the expanded list.
- The designation prohibits U.S. government contracts with listed firms starting later this month.
- A ban on third-party purchases of products or services from these companies will be implemented in 2027.
- Companies have the option to petition the Pentagon for removal from the list.
- Several designated companies deny the accusations and intend to pursue legal challenges.
The U.S. Department of Defense has expanded its list of Chinese companies believed to be linked to Beijing's military, adding 188 entities in its largest ever update. The designation includes prominent technology and automotive firms such as Alibaba, Baidu, BYD, and Nio, superseding a previous list from early 2025 and mirroring a withdrawn February version.
Under Section 1260H of the National Defence Authorization Act, the Pentagon will prohibit direct contracting with these companies starting later this month. A more comprehensive ban on purchasing their products or services through third parties is slated to take effect in 2027. Companies named on the list retain the ability to petition the Pentagon for their removal.
Several of the newly designated companies, including Alibaba, WuXi AppTec, and Baidu, have refuted the accusations, stating there is no basis for their inclusion and signaling their intent to challenge the designation legally. China's embassy in Washington criticized the list as discriminatory and urged for a fair operating environment for Chinese businesses. U.S. Representative John Moolenaar described the list as a warning to American businesses and government entities, suggesting these Chinese firms are collaborating with the Chinese military against U.S. interests. This action is seen as a manifestation of escalating U.S.-China competition, with the U.S. increasingly viewing the technology sector as a domain of strategic contestation.