Pentagon Expands China Military List — But Designations Precede New Administration and Remain Procedurally Opaque

The Section 1260H list is frequently misattributed to a single administration, but it was established by the FY2021 National Defense Authorization Act and has been updated annually since 2021. The January 6–7, 2025 additions — including Tencent and CATL — were published in the Biden administration's final days in office. The list's core accountability problem is procedural: companies are designated without a public evidentiary hearing or a clear removal mechanism. Tencent has stated it will 'initiate a review process' and 'if necessary, pursue litigation,' but no active, confirmed lawsuit is documented in available sources. The list's opaque designation process undermines due process and makes it a blunt instrument of economic statecraft.

Any administration using the 1260H list should commit to three reforms: (1) publish the unclassified evidence supporting each designation, (2) create a formal appeal process with de novo review, and (3) limit the list to companies with direct, provable ties to weapons development or military procurement, not whole sectors like EV batteries or genomics. Until such safeguards exist, the list remains a credibility risk — every unsubstantiated designation weakens U.S. claims to rule-of-law governance and invites retaliatory restrictions on American firms in China.