The Pentagon's June 2026 update to the Section 1260H Chinese Military Companies list added 65 entities, including Alibaba, Baidu, BYD, NIO, WuXi AppTec, Unitree Robotics, and memory chipmakers CXMT and YMTC, while removing 10 others primarily because they no longer operate directly or indirectly in the United States. Listed firms can formally petition the Department of Defense for removal with supporting evidence, a process that has succeeded in prior cases through lawsuits demonstrating limited military-civil fusion ties or operational changes. WuXi AppTec recently secured a preliminary injunction against enforcement and continues active appeals. With the market resolving by June 30, 2027, trader focus centers on the pace of successful petitions, additional legal challenges, potential further list revisions amid ongoing US-China trade dynamics, and any policy shifts affecting designation criteria or enforcement timelines.