A general view of the office building of Baidu is in Pudong, Shanghai, on Feb. 9, 2026. Ying Tang | Nurphoto | Getty Images The Pentagon added a slew of Chinese companies, including Alibaba Group, Baidu Inc and carmaker BYD, to a list of entities it believes have aided the Chinese military, complicating the fragile diplomatic relationship between Washington and Beijing. The Defense Department published an updated “1260H list” Monday evening stateside — a roster of companies the Pentagon considers affiliated with China’s military or defense industrial base. The designations do not impose sanctions explicitly, but mean the Defense Department will be prohibited from contracting directly with listed companies starting later this month, and from procuring their products or services through third parties beginning in June 2027. “These indirect restrictions could force some U.S. firms that work with the U.S. military to drop designated Chinese firms as suppliers,” said Michael Hirson, head of China Research at 22V Research. Baidu’s American depositary receipts dropped 2.1%, Alibaba slumped 0.8% and BYD slid 0.8%. The additions come after President …