Overview
- Deputy Defense Secretary Stephen Feinberg told lawmakers in an October 7 letter that Alibaba, Baidu and BYD meet the threshold for the Section 1260H roster.
- It remains unclear whether the firms have been formally added to the list, with no public confirmation from the Pentagon at the time of reporting.
- Five additional Chinese companies were recommended for inclusion: Eoptolink Technology, Hua Hong Semiconductor, RoboSense Technology, WuXi AppTec and Zhongji Innolight.
- Section 1260H is an annual inventory of Chinese companies viewed as supporting the PLA, with 134 firms named in the January update, including Tencent and CATL.
- Shares of Alibaba, Baidu and BYD slipped in Hong Kong after the report, and Alibaba later denied any military ties and said such a designation would not affect its operations.