The United States has expanded its list of Chinese companies it alleges are linked to the country’s military, naming several major technology and industrial firms including Alibaba, Baidu and electric vehicle manufacturer BYD.
The updated designation was released by the US Defense Department on Monday, coming shortly after recent diplomatic engagement between US President Donald Trump and Chinese President Xi Jinping aimed at easing tensions between the two countries.
Washington’s move is expected to add fresh strain to an already sensitive relationship between the world’s two largest economies, despite both sides signalling a desire for stability in recent talks.
The Pentagon’s latest list follows an earlier version that was briefly published and then withdrawn earlier this year without explanation. The revised update largely mirrors the February draft, though it reinstates two Chinese semiconductor companies—ChangXin Memory Technologies and Yangtze Memory Technologies—that had previously been removed.
US lawmakers have strongly backed the updated designations. Representative John Moolenaar, chair of the House Select Committee on China, said the list serves as a warning to American firms and government bodies, urging them to cut ties with companies flagged over national security concerns.
Several of China’s leading technology groups appear in the updated list, including major players in artificial intelligence and digital services such as Alibaba, Baidu and Tencent. Tencent had already been included in earlier designations.
The inclusion has drawn strong pushback from Chinese companies. Baidu rejected the allegations, calling them “entirely baseless” and insisting there is no justification for its inclusion. The company also indicated it may pursue all available legal options to challenge the decision.
Alibaba also criticised the move, describing it as a “mistake” and denying any involvement in military-linked activities or so-called military-civil fusion programs.
Alongside major tech firms, the updated list also includes pharmaceutical company WuXi AppTec and robotics start-up Unitree, known for developing humanoid robots.
While the designation does not immediately impose legal restrictions on the companies, it is widely viewed as a potential step toward tighter future restrictions and broader economic pressure.
