Pentagon blacklist of Alibaba and Baidu is declared unpublished
Updated
Updated · Bloomberg · May 7
Pentagon blacklist of Alibaba and Baidu is declared unpublished
10 articles · Updated · Bloomberg · May 7
The Federal Register withdrew the notice within minutes at the Pentagon's request, after the Chinese AI groups had been added to a US military-linked companies list.
Despite the reversal, both New York-listed stocks fell that February morning, and Alibaba and Baidu said they would contest any designation as Chinese military companies.
The episode unsettled US-China tech ties and muddied signals to investors and policymakers ahead of a planned summit between Presidents Donald Trump and Xi Jinping.
Why did the Pentagon blacklist and then immediately retract its designation of Chinese AI giants?
As US restrictions on Chinese tech expand, how will the global AI industry be reshaped?
Inside the February 2026 Withdrawal of the U.S. Chinese Military Companies List: Diplomatic Tensions and Interagency Conflicts
Overview
In February 2026, the U.S. Department of Defense briefly published an updated list identifying major Chinese companies like Alibaba and BYD as linked to China's military efforts, then withdrew it within an hour amid internal government conflicts and delicate diplomatic tensions. The list's publication triggered a sharp selloff in Chinese tech stocks and strong denials from affected firms, while China condemned the move as politically motivated. This incident exposed the challenge the U.S. faces in balancing national security measures with economic interests and ongoing diplomatic negotiations, highlighting the complex interplay between defense policies, market reactions, and international relations in the evolving U.S.-China tech competition.