The U.S. “blacklist of Chinese companies” has been expanded again!This time it was the U.S. Department of Defense that included 78 large Chinese companies in the so-called "1260H list." These companies cover many fields, including Alibaba, Baidu, Qihoo 360, BYD, TP-Link, Sagitar Juchuang (robotics technology), WuXi AppTec (pharmaceutical research and development), and so on.

The 1260H list, also known as the Chinese Military Enterprise List (CCMC List) and the CMC List, is an identification list of military-related enterprises established by the U.S. Department of Defense in accordance with Section 1260H of the National Defense Authorization Act for Fiscal Year 2021. It is not a direct sanction, but will trigger a series of restrictions.

Enterprises included in the 1260H list will be subject to many restrictions, including:

-investment restrictions: U.S. investors are prohibited from buying or holding securities of listed companies; U.S. funds must gradually clear their positions.

-government procurement ban: The U.S. federal government is not allowed to sign or renew contracts with listed companies and cut off government procurement channels.

-supply chain exclusion: In order to avoid compliance risks, upstream and downstream enterprises in the global industrial chain actively reduce cooperation.

-Capital and Reputation Impact: Overseas financing, international cooperation, and market confidence are affected, and compliance costs rise.

Prior to this, there were already more than 130 Chinese companies on the 1260H list, but at the same time that Alibaba and others were "blacklisted",Yangtze River Storage and Changxin Storage were removed from the list, and the purpose was only to facilitate the purchase of Chinese memory and flash memory by American companies.

After the news was announced, the American depositary receipts of Alibaba and Baidu fell by about 5% and 4.5% respectively after the market opened.

Alibaba responded that the company is not a Chinese military company, nor has it participated in any military-civilian integration strategy, and will take legal action to refute relevant accusations.

Baidu has yet to respond.