Pentagon Briefly Adds Major Chinese Firms to Military List Before Withdrawing Filing
The US Department of Defense briefly added a broad group of Chinese companies to its list of firms alleged to have links to China’s military before withdrawing the updated document, in a move that added fresh uncertainty to already strained relations between Washington and Beijing.
The designation, which appeared in a revised filing, included prominent technology and manufacturing groups spanning artificial intelligence, biotechnology, drones and semiconductors. Among the companies named were Alibaba Group Holding, Baidu and electric vehicle manufacturer BYD, alongside biotech firm WuXi AppTec and lidar developer RoboSense Technology. The scope of the list reflected the growing overlap between advanced commercial technologies and areas viewed by US officials as having potential military applications.
Shortly after the update surfaced, the Pentagon withdrew the filing without providing detailed public explanation, leaving market participants and policymakers seeking clarity on the status of the companies involved. The episode unfolded just weeks before a planned high level diplomatic engagement between the two countries, intensifying scrutiny over the timing and implications of the action.
The Defense Department’s military list, formally known as the Section 1260H list, identifies companies it believes are linked to China’s military industrial complex. Inclusion on the list does not automatically trigger sanctions, but it can restrict US investment and increase compliance burdens for American businesses. Being designated can also carry reputational risks and affect access to international capital markets.
In the same update, Chinese memory chip makers Yangtze Memory Technologies and ChangXin Memory Technologies were removed from the list. The adjustments underscore how Washington continues to refine its approach to export controls, investment screening and supply chain security as it navigates strategic competition with China.
Over the past several years, US authorities have expanded scrutiny of Chinese firms operating in sectors considered sensitive, particularly semiconductors, artificial intelligence and advanced manufacturing. Export controls on advanced chips and equipment have reshaped global semiconductor supply chains, while investment restrictions have limited capital flows into certain Chinese technology companies.
For Beijing, such measures are often described as politicizing trade and technology issues. Chinese officials have repeatedly stated that commercial enterprises should not be used as tools in geopolitical competition. The latest listing and withdrawal highlight the delicate balance between national security considerations and economic interdependence between the world’s two largest economies.
Financial markets reacted cautiously to the developments, with investors closely watching for any follow up actions or clarifications. Analysts note that even temporary listings can increase regulatory uncertainty for multinational companies operating across borders.
As the United States and China continue to engage in dialogue while managing strategic rivalry, regulatory moves affecting major corporations are likely to remain a central feature of the relationship. The brief addition and removal of companies from the military list illustrates how policy signals can shift rapidly, carrying significant implications for global technology and trade networks.
