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Chinese Tech · Military-Civil Fusion · Sanctions · US-China Relations
The US Defense Department added Alibaba, Baidu, and BYD to its 1260H list of companies allegedly aiding China's military modernization, a move announced Monday in a Federal Register notice, further straining US-China relations.
This list identifies companies Washington believes are linked to China's military modernization or operate as part of China’s military-civil fusion strategy. The latest update means the US has now designated three of China’s leading artificial intelligence companies—Alibaba, Baidu, and Tencent—as firms allegedly aiding the Chinese military, with Tencent added in 2025.
The inclusion of BYD, China’s largest electric vehicle maker, expands the Pentagon’s scrutiny to a prominent clean technology and automotive company. The updated list also restored two major Chinese memory chipmakers, ChangXin Memory Technologies and Yangtze Memory Technologies, which had appeared in earlier US government designations.
The Pentagon’s 1260H list does not impose broad immediate sanctions; however, it limits listed companies’ ability to contract with the US military or receive certain research funding. This designation serves as a warning signal for investors and US agencies and is widely viewed as a precursor to tighter trade, investment, or export restrictions.
First published in 2021, the 1260H list now includes more than 100 Chinese businesses across various sectors.
