The Pentagon has significantly expanded its list of Chinese companies that the United States believes are linked to the People’s Liberation Army of China and support the country’s military-civil fusion strategy.
The updated list, published on June 8, includes several major Chinese brands, such as technology giant Alibaba, electric vehicle manufacturer BYD, and search engine leader Baidu. Other companies from the semiconductor, robotics, and biotechnology sectors were also added.
The list now contains 188 Chinese companies, up from approximately 134 a year earlier. Well-known brands such as Huawei and TP-Link had already been included previously.
Starting June 30, 2026, companies on the “Section 1260H list” will be prohibited from directly signing new contracts with the Pentagon. From 2027, the restrictions will also apply to indirect purchases. While this is not as severe as full sanctions under the Treasury Department’s SDN list, it creates a significant barrier to cooperation with U.S. defense agencies and suppliers.
The Pentagon states that the listed companies contribute to strengthening China’s defense-industrial base, even if they are formally considered part of the civilian sector.
Chinese companies have rejected the accusations as baseless and stated they are ready to defend their interests. Shares of Alibaba, BYD, and Baidu fell following the announcement.
U.S. lawmakers welcomed the move as a necessary step to counter China’s military strengthening.
This update comes amid persistent tensions between Washington and Beijing, despite recent attempts to stabilize high-level dialogue.
The list continues to grow, reflecting Washington’s increasing concern over China’s technological and military advancement. Additional restrictions in other areas are expected in the near future.