Alibaba Faces Pentagon Restrictions Amid U.S.-China Tensions

The Trump administration is poised to extend its list of entities allegedly linked to China's military, potentially adding companies such as Alibaba as early as Friday. According to insiders, this inclusion in the Pentagon's 1260H list, while not immediately sanctioning Chinese firms, will restrict future contracting by the department.

The move serves as a signal to suppliers to the Pentagon and other U.S. government agencies regarding the military's stance on these firms, some of which have previously pursued legal action against the U.S. for their classification. This update might also exacerbate tensions between Beijing and Washington after a trade agreement was forged in October by Xi Jinping and then-President Donald Trump.

Among the existing entries on the list are prominent Chinese corporations like Tencent Holdings and CATL. Recently, U.S. lawmakers urged Secretary of Defense Pete Hegseth to consider adding additional Chinese tech companies, including DeepSeek, Xiaomi, and BOE Technology, by year-end.