The United States has published an updated version of the Pentagon’s list of companies believed to be supporting China’s military, adding some of China’s most prominent technology and industrial firms including Alibaba, Baidu, BYD, and Nio, in a move that signals Washington’s continued view of the Chinese technology sector as strategically contested despite the recent fragile trade truce agreed between President Donald Trump and Chinese President Xi Jinping during Trump’s visit to Beijing less than a month earlier.
The updated list, known as the 1260H or CMC list, supersedes a version from early 2025. The new additions broadly encompass some of China’s most prominent technology firms, reflecting Washington’s security concerns amid deepening geopolitical rivalry. The key difference in the new release compared to a version the Pentagon briefly published in February before withdrawing it without explanation is the inclusion of Chinese memory chipmakers CXMT and YMTC, which had been dropped from the short-lived February list, drawing criticism from Washington’s China hawks. Other newly added entities include biotech company WuXi AppTec, artificial intelligence-driven robotics firm RoboSense Technology, and Unitree, a prominent Chinese manufacturer of humanoid and quadruped robots, which Nvidia had announced on June 1 that it planned to collaborate with to develop robots for researchers.
Several companies pushed back against their designation. Alibaba said there was no basis for its inclusion, calling itself neither a Chinese military company nor part of any military-civil fusion strategy, and threatened legal action. Baidu called the designation entirely baseless and said it would pursue all available options for removal. WuXi AppTec described its inclusion as incorrect and said it would take immediate steps to challenge it. China’s embassy in Washington opposed what it called discriminatory listings targeting Chinese companies and urged the United States to create a fair and non-discriminatory environment for Chinese firms. Nio said the procurement restrictions would not affect it, while Alibaba said the designation would not impact its ability to operate in the United States or globally.
While the listing does not constitute formal sanctions, United States law will bar the Defense Department from contracting directly with listed companies starting later this month, and from procuring their products or services through third parties from 2027. Craig Singleton of the Foundation for Defense of Democracies said the list served as a reality check following the Trump-Xi summit, adding that Washington was no longer viewing these as isolated companies but treating the entire technology stack as strategically contested. House China Select Committee Chair John Moolenaar described the updated list as a warning to American businesses, government bodies, and the public that the named Chinese companies were working against United States national interests. The development carries particular relevance for Pakistan, where Baidu recently signed a Memorandum of Understanding with Engro to advance artificial intelligence capabilities, and where Chinese technology companies are increasingly central to the country’s digital economy and infrastructure development agenda.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
