In a move that escalates bilateral commercial and diplomatic tensions between Washington and Beijing, the U.S. Department of Defense has added a slate of major Chinese firms to a congressional-mandated roster of companies linked to the Chinese military, counting among the new entries e-commerce and technology giant Alibaba Group and leading electric vehicle manufacturer BYD. The list, formally established under Section 1260H of the U.S. defense authorization statute, currently carries more than 80 entries of Chinese-owned commercial entities that operate within the United States. The official purpose of the inventory is to alert U.S. institutions to perceived national security risks tied to doing business with the listed firms. Crucially, the designation does not trigger an immediate ban on commercial activity between American entities and the added companies, a framing that signals the incremental escalation of pressure on Sino-U.S. economic ties. Alongside Alibaba and BYD, other high-profile new additions to the list include Chinese search engine operator Baidu, EV startup Nio, and state-owned commercial aircraft manufacturer Comac. Longstanding entries that remain on the roster from previous rounds of additions include other major Chinese technology players: telecommunications giant Huawei, internet conglomerate Tencent, drone manufacturer DJI, and leading global EV battery producer CATL. Officials at the Chinese Embassy in Washington D.C. pushed back sharply against the new designation in a statement provided to the BBC, labeling the entire list as a discriminatory tool that unfairly targets legitimate Chinese businesses. The embassy emphasized that all Chinese firms operating in the United States have consistently abided by American federal and local laws throughout their operations, adding that the unilateral blacklisting lacks any legitimate factual or legal foundation. Spokespeople for multiple companies named on the updated roster have issued public refutations of the Pentagon’s claims. A representative for Alibaba flatly rejected the government’s characterization, stating that the company has never operated as a military-linked entity, nor is it part of any Chinese state-run military-civil fusion initiative. “There is no basis whatsoever for our inclusion on this list,” the spokesperson said, adding that the company “will pursue all available legal avenues to counter baseless misrepresentations of our business and operations.” The BBC has reached out for official comment from other newly added companies including BYD and Baidu, and as of the latest reporting, no additional on-the-record responses have been released. This latest update to the Section 1260H list comes amid a broader ongoing shift in U.S. policy toward Chinese technology and industrial firms, with Washington increasingly framing commercial ties with large Chinese companies through a national security lens. Analysts note that while the designation does not carry immediate punitive measures, it can create chilling effects for investment, partnership, and market access for the listed firms, complicating their global expansion and access to U.S. capital markets.