{"id":58464,"date":"2026-02-13T10:38:18","date_gmt":"2026-02-13T14:38:18","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/pentagon-targets-alibaba-and-baidu-as-us-china-tensions-escalate-goldman-ceo-signals-growth-optimism\/58464\/"},"modified":"2026-02-13T10:38:18","modified_gmt":"2026-02-13T14:38:18","slug":"pentagon-targets-alibaba-and-baidu-as-us-china-tensions-escalate-goldman-ceo-signals-growth-optimism","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-targets-alibaba-and-baidu-as-us-china-tensions-escalate-goldman-ceo-signals-growth-optimism\/58464\/","title":{"rendered":"Pentagon Targets Alibaba and Baidu as US-China Tensions Escalate; Goldman CEO Signals Growth Optimism"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Pentagon expands its blacklist<\/strong>, adding Alibaba (<a href=\"\/stock\/BABA\">BABA<\/a>), Baidu (<a href=\"\/stock\/BIDU\">BIDU<\/a>), and BYD (<a href=\"\/stock\/BYDDY\">BYDDY<\/a>) to the list of Chinese firms allegedly aiding the military; Alibaba has vowed to take <strong>all available legal action<\/strong> in response.<\/li>\n<li><strong>US Treasuries jumped<\/strong> as investors increased bets on the Federal Reserve lowering interest rates <strong>three times<\/strong> this year, with Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>) maintaining a <strong>June rate cut<\/strong> as its base case.<\/li>\n<li><strong>Goldman Sachs CEO David Solomon<\/strong> expressed confidence in the US economy, stating the country is positioned to run at a <strong>higher base growth rate<\/strong> for the next few years without triggering overly high inflation.<\/li>\n<li><strong>China\u2019s Foreign Minister Wang Yi<\/strong> signaled a diplomatic shift, describing Ukraine as a <strong>&quot;friend and partner&quot;<\/strong> during a meeting with his Ukrainian counterpart to discuss a political resolution to the ongoing crisis.<\/li>\n<li><strong>January inflation data<\/strong> showed a significant <strong>0.59% month-over-month jump<\/strong> in core goods (excluding used cars), while tobacco products saw their largest rise since 2017 at <strong>2.1%<\/strong>.<\/li>\n<\/ul>\n<h2>US-China Tech Decoupling Accelerates<\/h2>\n<p>The <strong>U.S. Department of Defense<\/strong> significantly expanded its scrutiny of Chinese technology giants on Friday, adding Alibaba (<a href=\"\/stock\/BABA\">BABA<\/a>), Baidu (<a href=\"\/stock\/BIDU\">BIDU<\/a>), and electric vehicle maker BYD (<a href=\"\/stock\/BYDDY\">BYDDY<\/a>) to a list of companies allegedly supporting China\u2019s military. The list also includes telecommunications giant <strong>Huawei<\/strong> and shipping firm <strong>COSCO<\/strong>, though the Pentagon notably removed <strong>CNOOC<\/strong> from the designations.<\/p>\n<p>Alibaba (<a href=\"\/stock\/BABA\">BABA<\/a>) responded aggressively to the announcement, stating it will pursue <strong>legal action<\/strong> to challenge what it calls a misrepresentation of its operations. Simultaneously, the U.S. government proposed a new <strong>ban on federal agencies<\/strong> using certain Chinese-made semiconductors, further tightening the restrictions on Chinese hardware in American infrastructure.<\/p>\n<h2>Goldman Sachs CEO Projects Economic Resilience<\/h2>\n<p>In an interview with CNBC, Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>) CEO <strong>David Solomon<\/strong> offered a bullish outlook on the domestic economy, suggesting the U.S. can achieve <strong>strong growth<\/strong> without reigniting high inflation. Solomon noted that the firm is prepared for a &quot;higher based growth rate&quot; over the next two years, reflecting a shift in corporate sentiment toward a <strong>soft landing<\/strong>.<\/p>\n<p>Solomon also addressed internal leadership changes, confirming he &quot;reluctantly accepted&quot; the resignation of General Counsel <strong>Kathy Ruemmler<\/strong>. While expressing disappointment over her departure, Solomon praised her <strong>six years of expertise<\/strong> and stated the firm is ready to move forward under new legal leadership.<\/p>\n<h2>Markets Pivot on Inflation and Rate Cut Hopes<\/h2>\n<p><strong>US Treasuries rallied<\/strong> on Friday morning as market participants reacted to &quot;cooler&quot; elements of the January <strong>Consumer Price Index (CPI)<\/strong>. Investors are now pricing in higher expectations for the <strong>Federal Reserve<\/strong> to implement at least <strong>three interest rate cuts<\/strong> in 2026, with analysts from Goldman Sachs Asset Management pointing to <strong>June<\/strong> for the first move.<\/p>\n<p>Despite the overall cooling trend, specific sectors showed volatility; <strong>tobacco and smoking products<\/strong> surged <strong>2.1%<\/strong>, marking the biggest increase in nine years. Conversely, <strong>at-home alcohol prices<\/strong> fell, even as core goods (excluding used vehicles) rose by <strong>0.59%<\/strong> month-over-month, the largest such increase in recent months.<\/p>\n<h2>Geopolitical Shifts and Regulatory Updates<\/h2>\n<p>In a notable diplomatic development, Chinese Foreign Minister <strong>Wang Yi<\/strong> met with his Ukrainian counterpart, stating that China views Ukraine as a <strong>&quot;friend and partner.&quot;<\/strong> Wang Yi emphasized that China is willing to maintain communication and play a <strong>&quot;constructive role&quot;<\/strong> in seeking a political resolution to the regional conflict.<\/p>\n<p>On the regulatory front, the <strong>European Union<\/strong> announced it expects to conclude its <strong>Digital Markets Act (DMA)<\/strong> proceedings against Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) within the next <strong>six months<\/strong>. This timeline adds pressure on Alphabet (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) to align its search and platform services with strict new European competition standards.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Pentagon expands its blacklist, adding Alibaba (BABA), Baidu (BIDU), and BYD (BYDDY) to the list of Chinese firms 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