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OpenAI has confidentially filed for a US IPO targeting a valuation of up to $1 trillion, with a potential September debut; no size or firm terms were disclosed. The Pentagon added Alibaba, Baidu, and BYD to its 1260H China military-linked firms list, barring direct Defense Department contracts. AstraZeneca reported its obesity pill cut body weight by 10.5% in a Phase II trial, while broader Asia-Pacific macro items included China's May trade beat and a PBOC yuan fixing at its strongest since February 2023.

The Pentagon has added Alibaba, Baidu, BYD, WuXi AppTec, RoboSense, Unitree, CXMT, and YMTC to its 1260H list of China military-linked companies, barring direct DoD contracts from later this month and third-party procurement through June 2027. The designations stop short of formal sanctions or export blacklist status, but indirect restrictions could force US defence contractors to sever ties with listed firms. Alibaba and WuXi AppTec disputed their listings and said they would pursue legal action; Baidu ADRs fell 2.1% while Alibaba and BYD each dropped 0.8% on the news.

China's passenger car sales fell 21.6% year-on-year in April, marking a seventh consecutive monthly decline, as high oil prices suppressed domestic combustion engine demand and electrified vehicle sales also slid 6.8% for a fourth straight month. EV and plug-in hybrid exports surged 111.8% year-on-year, driven by elevated global fuel costs linked to the Iran conflict. BYD, the world's largest EV maker, saw its global sales decline for an eighth consecutive month despite export strength, reflecting the severity of domestic market weakness.

Tesla reclaimed the top global EV manufacturer position with 358,023 deliveries in Q1 2026, edging out BYD's 310,389 BEVs, though results still missed analyst expectations. Tesla's gross margins have compressed from 24% in 2022 to under 16% in 2025 amid intensifying competition and ongoing global market share losses. CEO Elon Musk's strategic focus on robotaxis and autonomous robots rather than the core EV business has raised near-term investor concerns.

BYD faces seven consecutive months of year-over-year domestic sales declines in China but reported a 65% year-over-year surge in exports in March 2026 and raised its 2026 overseas sales forecast to 1.5 million NEVs. Rising oil prices are cited as a potential tailwind for international EV demand. Tesla is referenced in the context of the broader EV market but is not a central focus of the article.

China's auto market is under severe pressure, with 56% of dealerships reporting losses in 2025 amid an intensifying price war. BYD reported a 19% decline in net profit and margin compression to 4.1%, though the company targets 1.5 million vehicle exports in 2026 as part of global expansion. The article frames BYD's vertical integration and cost structure as potential long-term advantages despite near-term headwinds.