Pentagon labels tech giant Alibaba and electric car maker BYD as aiding
Chinese military
[June 09, 2026] By
DIDI TANG
WASHINGTON (AP) — The Pentagon has added several prominent Chinese
businesses, including the tech giant Alibaba, electric car maker BYD and
search engine Baidu, to its list of Chinese military companies,
preventing them from getting U.S. defense contracts.
The list, updated and published Monday by the Pentagon, now sanctions
well-known, non-state-owned Chinese companies that are not traditionally
considered to be in the defense or security sector. It reflects growing
wariness of Beijing’s strategy of tapping the strength of non-state
businesses for military purposes.
Created in 2021 by a congressional mandate, the list seeks to identify
Chinese companies that the Pentagon considers to have links to the
Chinese military — not only those directly controlled by the Chinese
military and security forces but also those contributing to the
country's defense industrial base.
When updating the list last year, the Pentagon said the Chinese military
sought to acquire advanced technologies and expertise developed by
Chinese companies, universities and research programs that “appear to be
civilian entities.”
The Chinese Embassy on Monday accused the U.S. of “overstretching the
concept of national security and making discriminatory lists to go after
Chinese companies.” It said Chinese companies observe the laws and
regulations of the countries where they do business. “The U.S. should
stop its wrong practice and create a fair, just and non-discriminatory
environment for Chinese companies,” the embassy said in a statement.
Alibaba, BYD and Baidu said there is no basis for including them on the
list. “Alibaba is not a Chinese military company nor part of any
military-civil fusion strategy,” a statement from the leading e-commerce
company said. Baidu, which has expanded into artificial intelligence and
self-driving taxis, said the suggestion that it is a military company is
“entirely baseless.”
BYD said in a statement it is “not a military enterprise” and that the
determination “seriously contradicts the facts.” It also said it “will
actively safeguard its legitimate rights and interests through all
feasible administrative and legal means.”
This year's list has grown to 188 Chinese entities, up from last year's
roughly 130 named by the Pentagon. It already had covered companies such
as DJI, a major maker of consumer drones. While a company on the list
can still do business in the U.S., it faces reputational damage and
could be subject to more restrictions.
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Models stand next to a latest EV car from Chinese automaker BYD
showcased at the Auto China 2026, in Beijing, April 25, 2026. (AP
Photo/Andy Wong, File)
 After the Pentagon released the
updated list, the House Select Committee on the Chinese Communist
Party called it “a warning to American businesses, all levels of
government, and the American people." It said the companies on the
list that are traded publicly on U.S. exchanges should be delisted
and no American company should do business with those on the list,
“otherwise they are enabling China's military ascendance.”
In naming Alibaba, the Pentagon said the tech giant helps boost
China's defense industrial base because it is affiliated with the
country's Ministry of Industry and Information Technology. Alibaba
is traded on the New York Stock Exchange.
The Pentagon said BYD and Baidu are affiliated with the same
ministry, which oversees China's technology and industrial policies.
BYD is dominant in the global electric vehicle market, and President
Donald Trump said in January that he would welcome Chinese carmakers
such as BYD if they built plants in the U.S. and hired American
workers.
However, a number of U.S. lawmakers have said they will seek a ban
on Chinese electric vehicles.
Another addition is the Chinese robotics company Unitree, whose
dancing robots impressed Simon Cowell on NBC's “America’s Got
Talent.” The Pentagon said the company “knowingly received
assistance” from the Chinese government through its designation as a
small or medium-sized company that is highly innovative, highly
competitive globally and critical to the country's supply chain.
Unitree did not immediately respond to a request for comment.
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