Pentagon Blacklist Hits China AI Giants Alibaba, Baidu, and Unitree

The Pentagon has designated Alibaba, Baidu, and Unitree as Chinese military companies under Section 1260H, prohibiting them from US Defense Department contracts and future purchases through outside suppliers beginning in 2027. The listing stems from alleged ties to China’s State-owned Assets Supervision and Administration Commission (SASAC) and military-civil fusion programs, though both Alibaba and Baidu denied the claims. Alibaba and Baidu were cited for indirect affiliation with SASAC and contributions to military-civil fusion through their connections to China’s Ministry of Industry and Information Technology. Unitree, identified by its legal name Hangzhou Yushu Technology, was flagged for SASAC ownership and government assistance via its 'Little Giant' designation. The Pentagon also included memory chipmakers CXMT and YMTC, biotech firm WuXi AppTec, lidar company RoboSense, and electric vehicle maker BYD in the update. The move follows a recent US-China summit where AI chips and tech competition were key topics. Alibaba’s AI model Qwen recently outperformed OpenAI and Google in coding benchmarks, while Baidu’s Apollo Go autonomous vehicle platform is set for deployment in the UK and Germany in 2026. Unitree’s humanoid robots gained US exposure through a performance on *America’s Got Talent*, heightening scrutiny before the listing. The restrictions now threaten the global expansion of Chinese firms in AI, autonomous vehicles, and robotics. Washington’s action aligns with broader efforts to limit Chinese tech influence in sensitive sectors, escalating tensions in the US-China tech rivalry. The Pentagon’s list expands to 16 Chinese firms, signaling a sharp crackdown on perceived military ties in commercial technology.