The United States Department of Defense concluded that Alibaba Group Holding Ltd., Baidu Inc. and BYD Co. should be added to its “Section 1260H” roster — a list of firms the U.S. believes aid China’s military.
This action was announced in a letter sent to the U.S. Congress, dated October 7, 2025.
The move casts a shadow over some of China’s largest tech firms — firms with global reach, substantial U.S. business ties, and millions of investors.
Pentagon officials now believe these firms have provided support to the Chinese military. It remains unclear whether they have been formally added to the list as of now.
Shares of Alibaba, Baidu and BYD slid after the report hit markets.