US Targets Alibaba and Others Over Alleged Military Support to China
Expansion of the 1260H List
The Trump administration has recently expanded its list of Chinese companies accused of supporting China’s military, including major tech giants such as Alibaba and Baidu. This move is seen as an effort to increase pressure on Beijing ahead of a potential meeting between the leaders of the United States and China.
The list in question, known as the 1260H list, does not officially impose sanctions on these companies. However, under a new law, the Department of Defense will be prohibited from contracting or procuring goods and services from firms listed on the 1260H list in the coming years.
Additional Companies Added to the List
On Friday, several other notable companies were added to the list. These include:
- BYD, a leading automaker
- WuXi AppTec, a biotechnology firm
- RoboSense Technology Co Ltd, a company specializing in AI-driven robotics technology
In contrast, YMTC, a chip memory manufacturer, was removed from the list. This decision may indicate a shift in the US government's stance or a reassessment of the company's involvement with the Chinese military.
Implications for Suppliers
Being included on the 1260H list sends a clear message to suppliers of the Pentagon and other US government agencies regarding the US military's perception of these companies. Some of the firms on the list have already taken legal action against their inclusion.
Alibaba, one of the most prominent companies added to the list, responded by stating that there is no basis for their inclusion. The company also threatened to take legal action, emphasizing that "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy."
Potential Impact on US-China Relations
The update to the 1260H list could further strain relations between the United States and China, especially following a trade truce that was recently reached between President Donald Trump and Chinese leader Xi Jinping.
The list already includes several major Chinese companies, such as Tencent Holdings, one of the largest tech companies in China, and CATL, a significant battery maker in the electric vehicle industry.
Tencent, when it was added to the list, stated that its business would remain unaffected and that it would initiate a reconsideration process to address its inclusion. Similarly, CATL claimed that it is "not engaged in any military-related activities."
Pressure from US Lawmakers
US lawmakers have also expressed concerns about the inclusion of certain Chinese technology firms on the 1260H list. In December, they sent a letter to US defense secretary Pete Hegseth, urging the Pentagon to add more companies, including:
- DeepSeek, an AI firm
- Xiaomi, a smartphone manufacturer
- BOE Technology, an electronic display maker
This indicates a growing concern among some members of Congress about the potential influence of Chinese technology companies on national security.
Removal of Previous Entries
In addition to adding new companies, the list has also seen some removals. For example, YMTC was taken off the list. Other companies that were previously included, such as COSCO SHIPPING Finance Co Ltd and ChangXin Memory Technologies Inc (CXMT), were also removed.
These changes highlight the dynamic nature of the 1260H list and the ongoing evaluation of which companies pose a threat to US national security.
