Alibaba, Baidu Shares Fall After Brief Inclusion in Pentagon Blocklist

Alibaba and Baidu shares experienced sharp declines after being briefly and then immediately withdrawn from a U.S. Pentagon blocklist due to alleged military ties. This incident caused significant market volatility, especially in Hong Kong, highlighting investor sensitivity to geopolitical headlines and U.S.-China tensions. Despite the companies’ strong denials and ongoing technological advancements in AI, the event underscores the critical role of geopolitical risk in evaluating Chinese tech stocks.

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