U.S.-listed shares of Baidu fell on November 26, 2025, following a report that the Pentagon has recommended adding the company to a list of firms that aid the Chinese military. The recommendation was reportedly sent to Congress, and it remains unclear if the inclusion on the official 1260H list has been formalized. This list serves as a warning to U.S. investors about certain Chinese companies due to their alleged ties to the Chinese military-civil fusion strategy. In response to the news, Baidu's shares traded down by approximately 1.3%. This development introduces significant geopolitical risk for the company, potentially impacting its ability to operate and attract investment in the United States. The news overshadowed a recent significant upgrade from JPMorgan, which had raised its price target for Baidu, citing optimism about the company's AI and cloud businesses.