The U.S. Department of Defense added Baidu Inc. to a list of companies allegedly supporting China’s military development on February 14, 2026. This designation, which received further updates on February 15, triggered an immediate negative reaction in the equity markets.
Baidu’s U.S. depositary receipts declined by as much as 4.5% during extended trading on Friday.
The Pentagon withdrew the updated list minutes after its initial posting without providing an explanation for the move. This sudden reversal has led investors and analysts to speculate on the U.S. administration’s specific intentions regarding the company.
Baidu categorically denied the allegations, describing the claims as baseless. The company maintained that its products and services are designed strictly for civilian use.