By Tracy Qu and Jiahui Huang


Chinese companies including Alibaba and Baidu rejected their inclusion on a Pentagon list of businesses with alleged ties to China's military, a designation that restricts how they operate in the U.S.

The Pentagon on Monday updated its list of Chinese businesses the U.S. has identified as aiding Beijing's military. The updated list includes dozens of tech, robotics, biotech companies including Unitree, NIO, BYD, CALB and EVE Energy, among others.

Alibaba said in a statement that there is no basis to conclude that it should be placed on the list. "Alibaba is not a Chinese military company nor part of any military-civil fusion strategy. We will take all available legal action against attempts to misrepresent our company," a company spokesperson said.

Baidu said it "categorically" rejects the inclusion of the company on the list and there is no "credible justification" for adding the company to the list. A Baidu spokesperson said the company won't hesitate to use all options available to have itself removed from the list.

RoboSense Technology, a sensor maker for robots and vehicles, said "it has never engaged in any military-related business or activities," adding that it is a private-sector company focusing on the research and development of civilian robotics technologies.

BYD, NIO and Unitree didn't immediately respond to requests for comment by The Wall Street Journal.

Share reactions were mixed Tuesday in Hong Kong after the Pentagon updated its list. WuXi AppTec led losses on the Hang Seng Index, down 7.5%. Meanwhile, BYD shares rose 0.3% and Baidu shares rose 0.95%. Alibaba shares fell 0.9% and RoboSense shares were 0.5% lower.


Write to Tracy Qu at tracy.qu@wsj.com and Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

06-08-26 2315ET