The US Department of Defense recently released the 2026 edition of the “Chinese Military Industry Enterprise List,” with approximately 188 Chinese companies included, covering tech giants such as Alibaba, Baidu, BYD, and Uspace Technology. Experts pointed out that the significant expansion of this list reflects a shift in the US strategic focus from traditional military industry and semiconductor sectors to industries such as artificial intelligence, autonomous driving, and robotics, marking a comprehensive upgrade in US-China technological competition.
The US DoD (Department of Defense), on June 8, released the updated 2026 version of the “Chinese Military Industry Enterprise Cooperation List” (1260H). This list has seen a substantial expansion compared to the 2025 version, encompassing 80 parent companies and 188 Chinese entities, including numerous top Chinese tech companies crucial to China’s military and industrial capabilities.
In addition to well-known companies like Huawei, Tencent, SMIC, and Hikvision, this list for the first time includes civilian tech leaders like Alibaba, Baidu, new energy vehicle manufacturers BYD and Nio, as well as companies in the automotive industry chain like CATL.
Other newly added Chinese companies include artificial intelligence, robotics, and laser radar company SpeedyTech, as well as China’s leading humanoid and quadruped robot manufacturer Uspace Technology, both making their first appearance on the list.
According to US law, such documents must be submitted at least once a year. The Pentagon also added that these companies can apply to be removed from the list.
While the DoD’s “1260H” list will not immediately impose sanctions on Chinese companies, under a new law, the Pentagon will be prohibited from entering into contracts with and procuring from the companies on the list in the coming years. This is seen as another significant step in the US-China decoupling process.
The so-called “1260H” list refers to Section 1260H of the US National Defense Authorization Act, listing “Chinese military companies” operating directly or indirectly in the US. The criteria for designation include whether the entity is involved or cooperates with the CCP’s military-civil fusion policy.
On the day the US DoD updated the “Chinese Military Industry Enterprise Cooperation List,” the three main A-share indices in China collectively declined on June 8, with the SSE Composite Index falling below 4000 points.
Throughout the trading day, the Hang Seng Index in Hong Kong fluctuated weakly and closed with all three major indices in the red. By closing, the Hang Seng Index had dropped by 1.22%, the Hang Seng TECH Index by 2.71%, and the Hang Seng China Enterprises Index by 1.13%.
In response to the US release of the Chinese company list, the Chinese Ministry of Foreign Affairs spokesperson Lin Jian stated on June 9 in a press conference that China opposes the US’s generalized concept of national security and urged the US to stop suppressing Chinese companies.
Alibaba, BYD, Baidu, Nio, and other Chinese companies issued statements on June 9 denying that they are Chinese military industry enterprises or involved in China’s national defense industry-military integration.
A researcher at the Institute of Chinese Military and Operational Concept Studies at the Taiwan Institute for National Defense and Security, Wang Xiaowen, told Epoch Times that the US is increasingly recognizing the relationship between so-called “private enterprises” under the CCP system and national strategy.
She pointed out, “The US understands that under the CCP’s national system, there might not be purely private enterprises as defined by Western countries. Any private enterprise in China must comply if the CCP needs them to.”
It’s worth noting that the CCP, through various laws and policies such as the National Intelligence Law, requires enterprises, organizations, and individuals within China’s borders to support, assist, and cooperate with the authorities in intelligence and national security work, with severe penalties for non-compliance.
A researcher at the Taiwan Institute for National Defense and Security, Shen Mingshi, told Epoch Times that the US expanding the list may be due to discovering close relationships between companies that appear to be regular enterprises and the PLA.
He believes that rather than changing recognition standards, the US has obtained evidence of these companies’ assistance in PLA activities.
“These civilian enterprises actually play a role as conduits, assisting in technology imports, intelligence gathering, technology acquisition, and even various penetration operations,” Shen Ming said, suggesting that the US’s inclusion of these companies in the list aims to counter the military-civil fusion system.
Regarding BYD and other new energy vehicle companies being included on the US list for the first time, Wang Xiaowen noted that the reasons extend beyond competition in the new energy vehicle and battery industries and are closely related to the application of AI technology. Autonomous driving systems also possess significant data collection capabilities.
Wang Xiaowen specifically mentioned BYD’s intelligent driving system “Blade Battery,” which utilizes end-to-end control algorithms and AI computing architecture. “This not only relates to battery competition but expands into the realm of AI competition.”
Shen Mingshi further analyzed BYD’s inclusion from a national security perspective, emphasizing, “The most important aspect is whether BYD is cooperating with the PLA or what role it plays in gaining chip technology.”
He stated that the US is concerned about whether BYD could potentially become a channel for advanced technology input to the military. The US believes that many of the key military technologies of the CCP are not obtained through original research and development but through rapid catching up with advanced countries via technology transfer, knowledge acquisition, and various external channels.
In addition to AI data security concerns, the US is further tightening capital pathways to Chinese military enterprises through legislative means.
In January this year, Republican Congressman Scott Perry introduced the new bill “Divesting from Communist China’s Military Act,” aiming to prevent companies with CCP military backgrounds from accessing funding in the US stock market and strengthening sanctions against them.
Perry regarding the bill stated, “We should never allow our top enemy to receive or benefit from our capital markets or military procurement processes in any way.”
Looking ahead, Wang Xiaowen expects, “As the US deepens its understanding of China’s AI capabilities and ecosystem, this physical list will continue to expand.” She believes that as the robotics industry further integrates with AI technology, international attention to the development of military AI will continue to rise.
Shen Mingshi concluded by stating that the US’s containment of China’s technological rise has become a long-term strategy. He believes that the US is simultaneously exerting pressure on various fronts such as tariffs, export controls, chip restrictions, and the military-industry list to maintain technological superiority and enhance strategic deterrence.