The Department of Defense designation triggers investor sell-offs in BABA and BIDU shares amid broader US-China tensions.
Alibaba (BABA) and Baidu (BIDU) shares fell after the US Department of Defense designated them as Chinese military companies. The move expands a list restricting US investment in firms linked to China’s military, pressuring tech stocks with exposure to US markets.
The designation follows prior expansions of the list, which previously included firms like Huawei and SMIC. Analysts note the broader crackdown on Chinese tech firms under US national security policies, though no immediate trading restrictions were announced.
BABA and BIDU shares slipped 2-3% in premarket trading, reflecting investor concerns over potential future sanctions or divestment pressures.