Feb. 17 at 8:56 PM
The U.S. Department of Defense added Alibaba and Baidu to its 1260H list of Chinese military-linked firms. Shares fell less than 2% after the announcement, which was soon removed from the DOD website.
While no formal sanctions have been imposed, political and trade tensions could escalate later this year. Allegations include Alibaba supporting Chinese military operations and Baidu’s ties to defense research and sanctioned high-performance computing. Past actions against China Telecom, China Mobile, and China Unicom led to a
$40 billion market drop.
Investors should reassess the risk of holding Alibaba, Baidu, or other U.S.-listed Chinese military companies.
$BABA $BIDU