Pentagon Briefly Lists Alibaba, BYD, Baidu; Stocks Slide

The Pentagon's brief inclusion of Alibaba, BYD, and Baidu on a military-affiliated list sparked a tech sell-off in Hong Kong, with Alibaba down over 3%, BYD and Baidu each off about 1%. The list was quickly withdrawn without explanation. The 1260H designation, while not immediately punitive, restricts U.S. contracting and research funding and signals potential future trade curbs. Alibaba and Baidu denied military ties, with Alibaba vowing legal action. The list now exceeds 130 entities.