On January 6, the U.S. Department of Defense released an updated list of "Chinese military companies," adding three major names: e-commerce giant Alibaba, electric vehicle maker BYD, and search technology firm Baidu. The move brings the total number of companies on the list to 188, up from 134 in 2025.
China's embassy in Washington immediately condemned the inclusion of the companies as "discriminatory" and accused the U.S. of "abusing" the concept of national security. An embassy spokesperson stated: "Chinese companies operating abroad strictly comply with local laws and regulations. The U.S. should stop its wrongful actions and create a fair, equitable, and non-discriminatory environment for Chinese businesses."
Alibaba, BYD, and Baidu have not yet commented officially. Companies on this list are barred from consideration for U.S. defense contracts. According to the Pentagon's definition, a "Chinese military company" is an entity owned or controlled by the Chinese military, or one that contributes to Beijing's "civil-military fusion" strategy—integrating civilian research and innovation with national defense. Additionally, these companies must have business operations in the U.S. to be included.
The expansion comes less than a month after a two-day summit in Beijing between U.S. President Donald Trump and Chinese President Xi Jinping aimed at de-escalating their years-long trade war and technology rivalry. Analysts note that adding household brands not directly linked to defense is similar to last year's labeling of Tencent, owner of the WeChat app.
Beyond the three conglomerates, the list also includes RoboSense Technology, a Shenzhen-based AI and robotics firm, and Unitree Robotics, based in Hangzhou. Both companies have not responded to requests for comment.
National security expert Dennis Wilder, formerly with the CIA and the White House National Security Council on China affairs, expressed skepticism about the feasibility of such a broad sanctions list. He told Al Jazeera: "While it might make some American companies cautious about cooperating with labeled entities, in reality many U.S. firms already have deep ties with them and won't back out unless facing actual penalties. Such sweeping sanctions are ineffective. Unless the U.S. is prepared to fully decouple from the Chinese economy, this is merely a performative gesture."
