The U.S. Department of Defense added Alibaba, BYD, and Baidu to its military-linked blacklist in January 2025 [1].
This expansion marks a significant escalation in the effort to decouple critical technology and supply chains from entities the U.S. government considers security risks. By targeting major players in e-commerce, electric vehicles, and artificial intelligence, the Pentagon is restricting the operational reach of Chinese tech giants within U.S. defense frameworks.
Pentagon officials said the three firms have ties to the People’s Liberation Army [1]. These connections, officials said, pose a national-security risk to the United States [1].
The addition of these three companies brings the total number of Chinese firms on the military-linked list to 188 [1]. The list serves as a guide for U.S. agencies and contractors to avoid engaging with entities that could potentially support the Chinese military's modernization efforts.
Alibaba, one of the world's largest retail and technology conglomerates, and Baidu, a leader in AI and search engine technology, represent the digital infrastructure of China's economy. BYD, a dominant force in the global electric-vehicle market, represents the intersection of green energy and industrial capacity, both of which are priorities for the Chinese state.
The move follows a pattern of increasing scrutiny toward Chinese firms that operate in dual-use sectors, where commercial technology can be repurposed for military applications. While some reports suggest other firms like Tencent may also be targeted, the official count provided by the Pentagon focuses on the current total of 188 entities [1].
“The Pentagon added three Chinese firms to a military-linked blacklist, expanding the list to 188 Chinese companies.”
The inclusion of high-profile companies like BYD and Alibaba indicates that the U.S. is moving beyond niche military contractors to target the broader pillars of China's tech economy. This strategy aims to neutralize the 'civil-military fusion' policy of the Chinese government, which seeks to blur the lines between commercial innovation and military advancement. For the global market, this increases the risk of fragmented supply chains as U.S.-linked entities are forced to purge these specific providers from their ecosystems.
