The Pentagon has added several prominent Chinese businesses to its list of Chinese military companies. The list includes tech giant Alibaba, electric car maker BYD and search engine Baidu. The move prevents them from securing U.S. defense contracts. The list, updated Monday, now sanctions well-known, non-state-owned Chinese companies that are not traditionally considered to be in the defense sector. This year's list includes 188 entities, up from about 130 last year. While the companies can still operate in the U.S., they face reputational damage and potential restrictions. Alibaba, BYD and Baidu say there is no basis for including them on the list. The Chinese Embassy is accusing the U.S. of "overstretching the concept of national security."