Internet retail giant Alibaba Group Holding Limited (BABA) was named on an updated Pentagon list of major Chinese tech firms allegedly aiding the Chinese military. The so-called 1260H list does not formally add sanctions on Chinese firms. However, a new law prevents the department from contracting or procuring from the mentioned companies. Importantly, the list was later withdrawn from publication.
While the reason for the withdrawal was unclear, it may be due to the U.S. government’s efforts to improve relations with China following a trade truce. President Trump is expected to visit China in April. Alibaba’s stock slid on news of the blacklist, but a company spokesperson stated that the firm is “not a Chinese military company nor part of any military-civil fusion strategy.”
