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Several Chinese companies, including Alibaba, BYD, Baidu and WuXi AppTec, have rejected their inclusion on a so-called US list alleging links to Chinese military, calling the designation baseless and factually inaccurate. A Chinese expert said the expanded list, which now covers leading Chinese firms across multiple sectors, represents a politically motivated and economically biased move of the US, reflecting Washington's attempt to curb the growth of China's technology companies under the guise of national security.

Chinese Foreign Ministry spokesperson Lin Jian said on Tuesday that China firmly opposes the US overstretching the concept of national security and formulating various types of discriminatory lists to go after Chinese businesses, in response to a question related to the list.

"We urge the US to correct its wrongdoings, and stop the unwarranted suppression of Chinese businesses. China will do what is necessary to firmly protect their legitimate and lawful rights and interests," Lin said.

In a statement sent to the Global Times on Tuesday, Alibaba said "there's no basis to conclude that Alibaba should be placed on the Section 1260H List. Alibaba is not a Chinese military company nor part of any military-civil fusion strategy. We will take all available legal action against attempts to misrepresent our company." 

Baidu also pushed back against the list. "We categorically reject the inclusion of Baidu on the list, and there is no credible justification for adding Baidu to the list. The suggestion that Baidu is a military company is entirely baseless," a Baidu spokesperson told the Global Times on Tuesday, adding that it will not hesitate to use all options available to have the company removed from the list.

WuXi AppTec said in a statement to the Hong Kong exchange on Tuesday that they are not owned or controlled by or affiliated with any military or government entity of China. "We believe that the designation of WuXi AppTec on this updated list, along with the alleged basis for the designation, was clearly a mistake, and WuXi AppTec will take immediate actions to challenge and correct this erroneous designation," it said in the statement.

Chinese auto maker NIO also said in a statement to the Hong Kong exchange that its inclusion on the US' "Chinese Military Companies" list was unjustified, stressing that it is neither a Chinese military company nor a military-civil fusion contributor. The company said it would seek to correct the designation and take legal action if necessary.

BYD also responded on Tuesday through a statement posted on its official website, saying there was no justification for including the company on the list, as it is neither a Chinese military company nor a military-civil fusion contributor to China's defense industrial base. The company added that the US government procurement restrictions associated with the list would not affect its business of the company.

The US Defense Department on Monday identified 188 Chinese entities that meet the statutory requirements for inclusion on the most recent 1260H List.

Though the listing does not formally impose sanctions on Chinese firms, under recent US law the Defense Department will be prohibited starting later this month from contracting directly with companies on the list, and from buying their products or services via third parties beginning in 2027, Reuters reported.

Beyond national security

Compared with previous versions, the updated list extends beyond semiconductors and defense-related sectors. Newly added companies span a wide range of industries, including internet platforms, artificial intelligence, robotics, biotechnology and new-energy vehicles.

Chen Jing, vice president of the Technology and Strategy Research Institute, told the Global Times on Tuesday that the expanded scope suggests that Washington's concerns are no longer limited to specific technologies but increasingly extend to China's broader innovation ecosystem and emerging industries. 

Chen noted that many of the newly listed companies are private-sector firms serving civilian markets. In his view, the latest expansion suggests that the definition of "military links" is being applied increasingly broadly, putting more companies in strategic industries at risk of being labeled.
"What we are seeing is a shift from targeted restrictions on specific technologies to broader efforts aimed at China's innovation-driven development," he said.

In February, the Pentagon briefly posted an updated list, but then quickly withdrew it. The new version released on Monday mirrors the withdrawn February list with the exception of the inclusion of China's top memory chipmakers CXMT and YMTC,  Reuters reported.

Other companies added include AI-driven robotics company RoboSense Technology Co Ltd and Unitree, a leading Chinese maker of humanoid and quadruped robots. 

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times that the move appears designed to limit the market share of China's top enterprises abroad. Such unilateral, discriminatory measures conflict with WTO rules, which require transparency and sufficient evidence when invoking national security concerns, he said.

Zhou added that the list reflects concerns over the growing competitiveness of Chinese tech companies. At its core, he said, the measures are anti-competitive and represent a politicization of trade. 

Such actions could disrupt effective market operations and hinder international collaboration, he said. Zhou warned that in the long term such measures will weaken US' tech competitiveness, erode its global service capabilities, and diminish its role in global governance.

Chen said US' restrictions have consistently targeted sectors where China is seen as having the greatest potential to challenge existing technological leadership. "In that sense, being placed on the list reflects the competitiveness of these companies," he said. "But the designation can also create real pressure on affected firms. The bigger challenge is whether China can continue to strengthen its own innovation ecosystem and maintain technological progress despite external restrictions."