Shares of Alibaba (NYSE: BABA) were climbing today along with other Chinese stocks after The Wall Street Journal reported that the Chinese tech giant, along with Tencent and Baidu, will no longer be added to a Pentagon blacklist.
The Department of Defense had identified a dozen Chinese companies that it claims support Chinese military and intelligence operations, and the Trump administration has imposed a ban on owning such stocks, set to take effect this November. But after a debate with the Treasury Department, which feared economic fallout from including three of China’s biggest tech companies, the trio will no longer be on the list.
As of 3:38 p.m. EST on Wednesday, Alibaba stock was up 5%, while Tencent had gained 3%, and Baidu, the smallest of the three, was actually down 0.9%. All three jumped around 2 p.m. when the news came out.