The United States has designated major Chinese technology companies, including Alibaba, Baidu, and BYD, as ‘companies supporting the Chinese military’. Although the designation does not mean immediate sanctions, the inclusion of numerous core firms closely tied to China's industrial and defense capabilities has prompted assessments that it could again heighten tensions between the United States and China.

On the 8th (local time), the Ministry of National Defense announced in a press release that, under Section 1260H of the National Defense Authorization Act (NDAA), it had updated the list of Chinese military companies and published it in the official gazette. Section 1260H is a provision that allows the Ministry of National Defense to compile and manage a roster of companies deemed to directly or indirectly support the Chinese military.

A total of 188 companies were listed. Alibaba, a leading e-commerce firm in China; Baidu, the largest internet search portal in the country; and electric-vehicle maker BYD were newly added. The Ministry of National Defense stated that Alibaba and Baidu are “companies that, in a civil-military fusion manner, contribute to a defense industrial base linked to the Ministry of Industry and Information Technology (MIIT) of China.” Regarding BYD, it said the company is “directly or indirectly connected to the State-owned Assets Supervision and Administration Commission (SASAC) under the Chinese government, and is also indirectly linked to MIIT as a civil-military fusion contributor.”

Humanoid-robot maker Unitree, autonomous-driving technology company RoboSense, and pharmaceutical and biotech firm WuXi AppTec were also newly included. Tencent, the artificial-intelligence big tech company added last year, remains on the list.

Companies on the list do not immediately become subject to sanctions or export controls. However, they appear increasingly likely to be excluded from future procurement projects by the Ministry of National Defense. AFP reported that the designation does not have an immediate legal effect but suggests the possibility of subsequent punitive measures.

Reuters assessed it as “a step that could intensify tensions between the United States and China,” noting that the list includes many major technology companies that play a crucial role in strengthening China's military and industrial capabilities, and analyzing that the move reflects U.S. security concerns amid geopolitical competition.

The announcement came less than a month after U.S. President Donald Trump and Chinese President Xi Jinping held a summit in Beijing last month. At the time, the two countries agreed to expand bilateral trade, and President Trump has since invited President Xi to Washington in September.

The Ministry of National Defense had temporarily published the 1260H list in the official gazette in February and then withdrawn it. At the time, there was speculation that the move took account of bilateral relations ahead of the summit. When reports in February indicated they were on the list, Alibaba and Baidu said they provide only civilian products and services and signaled the possibility of legal action.

The Chinese Embassy in the United States said in a statement that it “opposes the compilation of a discriminatory list targeting Chinese companies” and that “Chinese companies comply with local laws and regulations.” It added, “The United States should stop the wrong practice and create a fair and non-discriminatory environment for Chinese companies.”