Pentagon's 1260H Blacklist Looms Over Trump-Xi AI Summit in Washington

The Pentagon's expanded 1260H blacklist of Chinese companies is emerging as a central point of tension in this week's Washington summit between President Donald Trump and Chinese President Xi Jinping, with artificial intelligence policy expected to dominate the agenda. The roster, mandated by Congress, now includes nearly 200 Chinese entities including Alibaba Group Holding Ltd. and Baidu Inc., both added in the June update, as well as BYD Co. Designated companies face restrictions on government contracting, and rules effective June 30 effectively bar lobbyists from representing them. China retaliated after the June update with export and procurement restrictions targeting US businesses. Alibaba, WuXi AppTec, Hesai Group and drone maker DJI have filed federal lawsuits seeking removal, scoring interim procedural victories that Chinese state media have publicized. Ahead of the summit, US and Chinese officials met in New York on September 20 and agreed to establish a "US-China AI dialogue," according to Treasury Secretary Scott Bessent. Beijing is considering inviting BYD executives to join Xi's delegation.