Foreign media reported that the U.S. Department of Defense is reviewing a plan to add major Chinese corporations such as Alibaba, Baidu, and BYD to a list of companies that support the Chinese military.
According to Bloomberg on the 26th (local time), U.S. Vice Minister of the Department of Defense Steven Feinberg said in a letter sent on the 7th of last month to the chairpersons of the House and Senate Armed Services Committees that "after reviewing the latest information, we have identified eight Chinese 'military corporations' that, under the statute, should be added to the 1260H list."
The eight corporations Vice Minister Feinberg mentioned are Alibaba, Baidu, BYD, Optolink Technology, Hua Hong Semiconductor, RoboSense Technology, WuXi AppTec, and Zongji InnoLight. However, it was reported that whether the roster has been finalized has not yet been confirmed.
Since 2021, the U.S. Department of Defense has placed corporations operating in the United States that are linked to the Chinese military on the 1260H list under the National Defense Authorization Act (NDAA). The 1260H list is released annually and was last updated in January. More than 130 corporations are currently included. It is not known whether the eight corporations mentioned by Vice Minister Feinberg have been finally added to the list.
Even if included on the 1260H list, entities do not face sanctions such as export controls, but it can damage corporate reputation. That is because it is taken as a warning signal by U.S. investors.
Once the news broke, Alibaba immediately pushed back with a statement. Regarding its potential addition to the 1260H list, Alibaba said it was "baseless," adding, "We are not a Chinese military corporation and are not included in the military-civil fusion strategy." It added, "Alibaba does not conduct business related to U.S. defense procurement, so even if it is included on the 1260H list, it will not affect normal business operations in the United States or around the world."