WASHINGTON, Feb 13 (Reuters) - The Trump administration
is expected to add companies, including Alibaba ( BABA ), to a
list of firms allegedly aiding China's military as soon as
Friday, two people familiar with the matter said.
The Pentagon's 1260H list has not formally imposed sanctions
on Chinese firms, but under a new law the department will be
prevented in coming years from contracting and procuring from
companies on the list.
Being added to the list also sends a message to suppliers to
the Pentagon and other U.S. government agencies about the U.S.
military's opinion of the firms, some of which have sued the
U.S. over their inclusion.
Alibaba ( BABA ) and the Pentagon could not be immediately reached
for comment.
Updating the list could antagonize Beijing following a trade
truce reached by China's Xi Jinping and U.S. President Donald
Trump in October.
The list already includes major Chinese firms such as
Tencent Holdings ( TCTZF ), one of China's largest tech
companies, and CATL, a major battery maker in the electric
vehicle industry.
Tencent ( TCTZF ) said at the time it was added that its business
would be unaffected and that it would initiate a reconsideration
process to correct its inclusion, while CATL said it was "not
engaged in any military-related activities".
U.S. lawmakers sent a letter to U.S. Secretary of Defense
Pete Hegseth urging the Pentagon to add a slew of Chinese
technology firms including AI firm DeepSeek, smartphone maker
Xiaomi ( XIACF ) and electronic display maker BOE Technology to the list
in December.