On Monday, Texas Governor Greg Abbott announced a comprehensive ban on the use of products and services from several Chinese‑linked companies, including Baidu Inc., by all state employees. The restriction covers physical hardware, software, and artificial‑intelligence tools and applies to every state‑owned device and network.
The ban follows a threat assessment by the Texas Cyber Command, the state’s largest cybersecurity department established in June 2025. The assessment identified Baidu’s AI services—such as its Ernie Bot platform, cloud infrastructure, and other AI‑driven applications—as posing a risk of data harvesting by foreign adversaries. Abbott stated that the measure is intended to protect Texans’ privacy and prevent the People’s Republic of China from exploiting state networks.
Baidu is one of China’s leading full‑stack AI companies, investing heavily in chips, cloud, and autonomous‑driving platforms. While the ban does not quantify the revenue Baidu derives from the Texas public sector, analysts expect a measurable impact on the company’s U.S. government‑sector sales. The move also aligns with similar actions by other U.S. states and federal agencies that have restricted Chinese technology firms such as Alibaba, Xiaomi, and Temu.
On the day of the announcement, Baidu’s shares fell 3.32%. The decline reflects market uncertainty surrounding the ban, though no single source attributes the move solely to Texas’s action. The decision underscores a broader trend of heightened scrutiny of Chinese tech in the United States, as states and the federal government seek to safeguard sensitive data from potential foreign influence.
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