On February 13, 2026, the U.S. Department of Defense officially included 78 major Chinese companies on its '1260H List.' Notable names on this list encompass Alibaba, Baidu, Qihoo 360, BYD, TP-Link, RoboSense, and WuXi AppTec. The 1260H List, established under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021, is designed to pinpoint entities labeled as 'Chinese military companies.' Although the designation itself does not constitute a direct sanction, it sets off a domino effect, leading to investment restrictions, prohibitions on government procurement, and exclusions from supply chains.

Prior to this update, the list already featured over 130 Chinese companies. However, this recent modification saw the removal of Yangtze Memory Technologies (YMTC) and ChangXin Memory Technologies (CXMT), a move aimed at easing the path for U.S. companies to procure Chinese memory chips. Following the announcement, Alibaba and Baidu experienced a downturn in their stock prices during after-hours trading. In response, Alibaba clarified that it is neither a Chinese military enterprise nor involved in civil-military integration efforts, and it pledged to take legal action to challenge these claims.