Baidu rejected allegations linking it to the military, saying such assertions have no factual basis

Baidu Inc. has denied allegations that it supports the Chinese military, calling such claims "entirely baseless" and lacking credible evidence. The company made the statement in response to reports that the U.S. Pentagon had recommended adding it to the Section 1260H List, which identifies companies allegedly aiding the Chinese military. Baidu emphasized that its products and services are designed for civilian use and that no evidence has been presented to substantiate the allegations. It also noted that being listed would have no material impact on its business, as it does not supply the U.S. military.

The controversy emerged after a report suggested that a university affiliated with the People’s Liberation Army’s Strategic Support Force had tested Baidu’s AI platform, Ernie. Baidu denied any affiliation or partnership with the institution and stated that if its large language model (LLM) was used, it would have been the publicly available version. The report led to a sharp decline in Baidu’s stock, with shares falling as much as 10% on January 15, 2026.

The Pentagon’s proposed additions to the 1260H List also include Alibaba Group and BYD Co., according to media reports. Both companies have similarly rejected the allegations, with Alibaba stating no military ties. Chinese officials and experts have criticized the move as an example of Washington’s growing tendency to politicize economic issues, which risks destabilizing global supply chains and undermining international trade norms.