The U.S. Department of Defense updated its “1260H list” on Monday, June 9, adding Chinese e-commerce giant Alibaba, electric-vehicle manufacturer BYD, search-engine leader Baidu, EV-maker NIO, and pharmaceutical-services firm WuXi AppTec to the roster of companies it considers affiliated with the People’s Liberation Army or China’s defense-industrial base. The list now names 188 Chinese firms.
The 1260H designation does not impose explicit sanctions. It prohibits the Defense Department from contracting directly with listed companies later this month, and gives a one-year limit to end any contracts that involve their use by third parties. The designation is a recognized red flag for U.S. investors and is widely understood to precede more punitive trade restrictions. All five newly listed companies have rejected the designation and say they will challenge it.