The Pentagon has added several major Chinese companies, including Alibaba, BYD and Baidu, to its list of companies it says have ties to China's military, making them ineligible for US defense contracts.
The updated list, released Monday, expands US scrutiny beyond traditional defense firms to include some of China's best-known private-sector companies. The move reflects growing concerns in Washington that Beijing is using the expertise and technology of civilian businesses to strengthen its military capabilities.
The list was established in 2021 under a congressional mandate to identify Chinese companies believed to have links to the country's military. It includes not only firms directly controlled by military authorities but also those considered to support China's defense industry.
The Pentagon has previously said that China's military seeks access to advanced technologies and expertise developed by businesses, universities and research institutions that appear to operate as civilian entities.
China strongly criticized the decision. The Chinese Embassy in Washington accused the United States of misusing national security concerns to target Chinese businesses and called on Washington to provide a fair and non-discriminatory business environment for Chinese companies.
Alibaba and Baidu rejected the Pentagon's claims.
Alibaba said it is neither a military company nor part of any military-civil fusion program. Baidu, which has expanded into artificial intelligence and autonomous driving technology, described its inclusion on the list as completely unfounded.
The latest update increases the number of companies on the Pentagon's list to 188, up from about 130 last year. The list already included firms such as DJI, one of the world's leading makers of consumer drones.
Although companies on the list are not banned from operating in the United States, the designation can damage their reputation and may lead to additional restrictions in the future.
Following the announcement, the House Select Committee on the Chinese Communist Party described the list as a warning to American businesses, government agencies and the public. The committee argued that Chinese firms on the list should be removed from US stock exchanges and that American companies should avoid doing business with them.
The Pentagon said Alibaba supports China's defense industrial base through its ties to the country's Ministry of Industry and Information Technology. It also cited similar links involving BYD and Baidu.
BYD, one of the world's largest electric vehicle manufacturers, has become a dominant player in the global EV market. Earlier this year, US President Donald Trump said he would welcome Chinese automakers such as BYD if they built factories in the United States and hired American workers. However, several US lawmakers continue to push for restrictions on Chinese-made electric vehicles.
Another company newly added to the list is Unitree, known for its advanced robots that recently gained attention on the TV show America's Got Talent. The Pentagon said Unitree had received support from the Chinese government through programs designed to help innovative and globally competitive companies.
BYD and Unitree did not immediately respond to requests for comment.