Annual Section 1260H update

[william]

The US military has officially branded China’s most powerful civilian tech giants as military entities.

In a massive escalation of the tech cold war, the Pentagon finalized its annual Section 1260H update, formally designating Alibaba, Baidu, and BYD as "Chinese military companies" operating directly or indirectly within the United States.

Washington asserts that these corporate giants are deeply entangled in Beijing’s military-civil fusion strategy, serving as conduits for the People’s Liberation Army to access cutting-edge civilian innovations in artificial intelligence, e-commerce, and electric vehicles.

While the designation does not impose immediate blocking sanctions on the private sector, it triggers a severe operational countdown for defense contractors and global supply chains.

Beginning June 30, 2026, the Department of Defense is legally barred from securing or renewing contracts with any of the listed firms. Simultaneously, strict new defense regulations will penalize any US entities that engage lobbyists for these blacklisted Chinese firms, setting the stage for a sweeping indirect procurement ban in 2027 that will target any products containing their components.

The reputational and financial fallout is already vibrating through global markets, triggering an immediate drop in Alibaba’s stock as institutional investors scramble to reassess compliance risks. Although Alibaba, Baidu, and BYD have forcefully rejected the Pentagon's classification, asserting they are strictly independent commercial enterprises, Beijing is poised for a fierce diplomatic and economic response.

The line between Chinese commerce and military power has been officially erased by Washington, forcing global enterprises to rapidly purge these entities from their networks.

https://twitter.com/x/status/2064046063070445884

 

[Publius]

You know I certainly see viable concerns with Chinese business who are deeply embedded with the PLA or CCP.

This is a nuanced problem and one that is going to be hard for Joe Blow and the rest of us to be able to suss out.

We have DARPA and the manufacturers who are also deeply intertwined with military contracts.

Unfortunately this is just kinda the way of things with nations and their opponents. The proverbial “Big boy rules”

I listened to a Podcast today about the writings of Umberto Eco. Certainly not a right wing nationalist” who wrote “The Name of The Rose” amongst other things.

It was about his response to
Wikileaks. Specifically the State Department Docs that exposed the US spying on allied foreign governments.

His concern wasn’t that the US was spying on European allies. “Of course nations spy against other nations, including their allies”. Grow up Peter Pan eventually did.

His concern was that this type of “public” revelation serves the purposes of no one except sensationalist tabloid journalist and internet wags. “Assange”

not all whistleblowers are altruistic servants of the greater good, sometimes they’re just attention seeking whores (no gender or profession implied here)

 

[william]

I don't know if you have any money in companies that use Chinese components but if you do, I would get out quick because they are going to take a hit. Already are! Personally, I think this is long overdue.