The Pentagon has concluded that Alibaba Group Holding, Baidu and BYD should be added to a list of companies that support the Chinese military, reports Reuters.

Deputy Defense Secretary Stephen Feinberg informed lawmakers of the conclusion in a letter dated October 7, three weeks before Presidents Donald Trump and Xi Jinping agreed to a broad trade truce, according to the report.

It is not clear if the companies have been formally added to the Pentagon's 1260H list of Chinese firms deemed military-linked but operating in the US. The designation does not impose immediate bans but can damage reputations and serves as a warning to US businesses about the risks of dealing with them.

Mr Feinberg said the three companies and five others, Eoptolink Technology, Hua Hong Semiconductor, RoboSense Technology Co, WuXi AppTec Co and Zhongji Innolight Co, merit inclusion on the 1260H list, according to the report.