Pentagon Adds Alibaba to 1260H Blacklist, Bars US Defense Contracts
BABA•On June 9, 2026 the Pentagon expanded its Section 1260H blacklist to include Alibaba, Baidu and BYD, barring the U.S. Defense Department from contracting with them directly starting later this month and via third parties by June 2027. Alibaba has rejected its inclusion as baseless and plans to challenge it.
1. Pentagon Expands 1260H Blacklist
On June 9, 2026 the Department of Defense updated its Section 1260H list to include Alibaba, Baidu and BYD among companies believed to support China’s military-industrial complex. This replaces the previous blacklist from early 2025 and adds leading chipmakers and tech firms critical to Beijing’s defense supply chain.
2. Contracting Restrictions
Following the update, the Defense Department is prohibited from awarding new contracts to these firms starting later this month and from acquiring their products through third parties by June 2027. Existing contracts involving the named companies will be reviewed and potentially terminated to comply with the expanded restrictions.
3. Corporate Responses
Alibaba issued a statement rejecting its placement as baseless and announced plans to challenge the listing through official legal channels. Baidu categorically denied any military ties and indicated it will seek removal, while BYD and other newly listed firms have not yet issued public comments.
4. Implications for Alibaba
The blacklist could curtail Alibaba’s access to US government business and complicate partnerships with defense contractors, potentially reducing overseas revenue streams. Legal challenges and heightened scrutiny may prolong regulatory uncertainty, weighing on investor sentiment and the company’s global expansion strategy.
