The United States has recently expanded its list of companies designated as "Chinese military companies," adding 54 new entities to the roster. The Federal Register notice, published this week by the US Department of Defense, designates these companies under Section 1260H of the National Defense Authorization Act. According to the notice, the Deputy Secretary of Defense determined that these entities qualify as Chinese military companies, are engaged in providing commercial services, manufacturing, producing, or exporting, and operate directly or indirectly in the United States.
Implications of the Designation
The Section 1260H designation does not impose immediate export controls or prohibit companies from doing business with US customers. However, starting June 30, the Pentagon will be barred from directly procuring products or services from the designated companies. Since most of the affected Chinese technology and manufacturing firms do not sell directly to the US military, analysts suggest the immediate operational impact is likely limited. The Pentagon's roster has now expanded to 188 Chinese entities, up from 134 in the previous official revision.
New Additions to the List
The latest additions span sectors such as artificial intelligence, electric vehicles, robotics, and biotechnology. Notable companies include Alibaba Group, Baidu, BYD, WuXi AppTec, RoboSense, and Unitree Robotics. Chinese memory-chip makers ChangXin Memory Technologies and Yangtze Memory Technologies Co were also added, having been briefly removed from the list in February. This update follows the addition of Tencent Holdings and battery giant CATL in January last year.
Responses from Affected Companies
A Baidu spokesperson stated, "There is no credible justification for adding Baidu to the list. The suggestion that Baidu is a military company is entirely baseless. We will not hesitate to use all options available to us to have the company removed." Alibaba also disputed the designation, saying there was "no basis" for its inclusion. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy," an Alibaba spokesperson said. "We will take all available legal action against attempts to misrepresent our company." In a filing to the Hong Kong stock exchange, WuXi AppTec said it had been "incorrectly" included and reiterated that it was not owned, controlled, or affiliated with any branch of the Chinese military.
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