Major Chinese technology companies, including Alibaba Group and Baidu, have rejected their inclusion on a revised Pentagon list of firms allegedly linked to China’s military. The updated list, released on Monday, includes dozens of companies across sectors such as robotics, biotech, and electric vehicles, and is used by the U.S. to restrict certain business and investment activities involving designated firms.
Alibaba strongly denied the classification, stating there is “no basis” for the designation and that it is not involved in any military-civil fusion activities. The company said it will pursue legal action to challenge the decision. Baidu also “categorically” rejected the listing, calling it unjustified and saying it would seek removal through all available channels. Other firms named, including BYD, NIO, and robotics firm Unitree Robotics, did not immediately respond.
Market reaction was mixed following the announcement. In Hong Kong trading, biotech firm WuXi AppTec led declines, while BYD shares edged higher and Baidu also posted gains. Alibaba, however, slipped slightly, and RoboSense declined. The divergence highlights investor uncertainty over the financial and regulatory impact of the Pentagon’s updated classification list.
The development adds another layer of tension between Washington and Beijing, particularly in sensitive sectors such as artificial intelligence, electric vehicles, and advanced manufacturing, where both countries are competing for technological leadership.
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