U.S. Tightens Grip: Major Chinese Firms Added to Military List

The Trump administration has intensified its pressure on China by adding major companies like Alibaba and Baidu to a Pentagon list targeting firms supporting China's military. This move escalates tensions prior to a potential meeting between the nations' leaders, marking significant geopolitical implications for the tech and business sectors.

The Trump administration took a significant step on Friday, adding several of China's largest companies, including Alibaba and Baidu, to a list of firms accused of aiding China's military efforts. This action increases diplomatic pressure ahead of an anticipated meeting between the leaders of the two countries.

The list, known as the Pentagon's 1260H, has not yet implemented formal sanctions on these Chinese firms. However, a new law will imminently restrict the military department from engaging in contracts or procurement activities with companies on this list, significantly impacting their operations.

Inclusion in the list aims to send a cautionary message to suppliers of the U.S. military, indicating the Pentagon's stance on these firms—some of which are actively seeking legal action to challenge their listing. Notably, this development comes in the wake of a trade agreement reached between China's Xi Jinping and U.S. President Donald Trump.

(With inputs from agencies.)