The Pentagon in Arlington.
Photographer: Stefani Reynolds/BloombergPentagon’s Botched Blacklist Highlights Frail Trump-Xi Truce
A mishandled blacklisting of tech giants Alibaba and Baidu gives a rare window into an administration often at odds with itself on how to approach Beijing
When the Pentagon added China’s artificial intelligence champions Alibaba Group Holding Ltd. and Baidu Inc. to a list of companies that aid the Chinese military, investors and policymakers saw it as a sign that Washington wasn’t afraid to challenge Beijing ahead of a planned high-stakes summit between Presidents Donald Trump and Xi Jinping.
That assumption was upended by what came next. Minutes after releasing the list, the US Federal Register declared it “unpublished” at the Pentagon’s request. Alibaba and Baidu, which both trade in New York, saw their shares tumble that February morning nonetheless, and both issued statements pledging to fight any attempts to label them Chinese military companies.