The June 2026 update to the Department of Defense’s Section 1260H list expanded it to 188 entities, adding major tech, AI, EV, semiconductor, and robotics firms such as Alibaba, Baidu, BYD, NIO, YMTC, CXMT, and Unitree while removing ten others that no longer operate directly or indirectly in the United States. Listed companies may petition for removal on grounds of changed operations, legal challenges, or failure to meet statutory criteria tied to military-civil fusion or PLA affiliation, as seen in prior delistings of firms like Xiaomi and certain memory-chip makers. Stricter DoD procurement restrictions taking effect June 30, 2027, alongside annual list reviews and potential US-China diplomatic shifts, represent key catalysts that could drive further removals before the market resolution date.
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